Analyst: Weston in no rush to spend after sale

Dec. 12, 2008, TORONTO – George Weston Ltd.’s sale of its U.S. bakery division is expected to push its cash resources above $4 billion, but don’t expect a quick decision on what it will do with the money.

Dec. 12, 2008, TORONTO – George
Weston Ltd.’s sale of its U.S. bakery division is expected to push its
cash resources above $4 billion, but don’t expect a quick decision on
what it will do with the money.

The US$2.5-billion divestiture has analysts speculating that Weston might be considering buying
the 38 per cent of Loblaw Cos. Ltd. it doesn’t already own. However, assessing
this option versus other opportunities available in this time of
widespread distress for global businesses will take some time, suggests
Desjardins Securities analyst Keith Howlett.

Meanwhile, BMO Capital Markets analyst Joe Morin said there is significant risk of negative ratings actions for Weston and potentially Loblaw.