Woolworths rejects Iceland bid because of scheme liabilities

A statement from the Woolworths board confirmed Iceland had been looking to take over the company’s retail division but these proposals had been rejected by the board.

It said the proposals required the company to retain all the pension liabilities for current and former employees of the retail business – something it said was unacceptable to the board.

The statement added the proposals undervalued the assets of the company and could have adversely impacted on Woolworths existing funding arrangements after meeting any resultant obligations to the pension fund.

It said: "It involved a complex restructuring which in practical terms is not achievable."

The board is now undertaking a review of the Woolworths group’s businesses.