THE suitor for Woolworths today said it was withdrawing its interest in the high street retailer.

Apax Partners said it had decided not to make a formal offer for Woolworths after being "unable to confirm certain key cash items" in the latter's books.

It added: "Apax reserves the right to make or participate in an offer within the next six months."

Woolworths said in a statement that it noted Apax's withdrawal of its possible offer.

Chairman Gerald Corbett said the group felt Apax's proposal of 58.2p per share was at a level that its shareholders would wish it to explore.

which had now been done.

"We are a large profitable cash-generative business and all our energies remain focused on running the business well and improving it for our shareholders," he said.

Woolworths, which in March announced a 4.7% rise in profits to £73.1 million in the year to January 29, said current trading on the high street remained challenging.

Like-for-like sales in the Woolworths core chain were down 3% in the first 10 weeks of the year.

However, action on costs and performance in its entertainment businesses were mitigating the effect of the sales shortfall and the seasonal loss in the first quarter would be similar to last year, it said.

The group said it was recommending a final dividend of 1.26p per share in the absence of an offer from Apax.

It said there had been a number of credible expressions of interest in its MVC music retail chain and it believed "a potential cash upside" may flow from the disposal of the business.

Cash from the disposal of its Big W superstore sites was in line with guidance, it added.

"The board is satisfied there is no further information which needs to be disclosed with regards to the group's cash position," it said.

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