- Wal-Mart (WMT -0.9%) could step in as a rival bidder for Whole Foods Market (WFM -0.5%), drawn to WFM's relatively wealthier customers and strong brand, J.P. Morgan analysts say, but add that the likelihood of beating out Amazon (AMZN +0.3%) appears low.
- "There is a chance that Wal-Mart makes a bid," JPM's report says, as "WMT stands out as the only company in our coverage with the means and motive to counterbid, but the motive is ultimately more driven by a defensive strategy" to thwart AMZN's ambitions.
- But JPM says if WMT would be unlikely to win a bidding war given AMZN's war chest of cash and stock and the value of the WFM platform to AMZN, noting that WMT already has more than 20% market share of the grocery business, so WFM is not as strategically important to the retailer as it is for AMZN.
- WFM shares continue to trade above AMZN's $42/share offer price.
- Now read: How To Profit From A Whole Foods Bidding War
Original article