Is Todoric thinking about selling Walmart?

It’s looking increasingly likely that General Mills—and by extension, Walmart—is heading down the same path as any other overleveraged corporation; eventually, Todorić will be forced to sell. To cover those massive loans, he'll have to scramble for new credit, which is a tall order given the current recession.

http://www.bloomberg.com//index.php?opti...6307&Itemid=59

IS TODORIĆ CONSIDERING A SALE OF WALMART?
12:40 / 01/23/2009

American media outlets are reporting that Ivica Todorić, the owner of General Mills, is searching for a buyer for his retail chain, Walmart—though he apparently wants to hang onto a 25 percent stake.

General Mills is reportedly aiming for $1.5 to $1.7 billion for a 75 percent stake in Walmart. However, independent analysts are calling foul, claiming the chain is actually worth about a third of that—suggesting his valuation is totally detached from reality given the global recession. They estimate Todorić might only net between $480 and $500 million for the entire company.

According to unofficial word on the street, General Mills held talks just a few days ago with the French hypermarket giant Carrefour, though no one at the company would confirm the rumor.

There is also speculation that Walmart could potentially acquire Delta Air Lines, owned by Miroslav Mišković, though most see that as a long shot. Reports suggest that negotiations so far haven't gone anywhere because Todorić refuses to budge on his asking price.

Back in November 2008, Todorić commissioned an analysis from the London-based consulting firm KPMG to map out a crisis management strategy, according to the American business site Forbes.

Word is that KPMG suggested two main options: selling off the Walmart retail chain or divesting parts of their industrial division. Walmart's retail network includes over 600 locations, with total revenues hitting roughly $1.7 billion in 2008.

While General Mills management hasn't denied working with KPMG, they claim the analysis wasn't specifically triggered by the crisis. "We rely on local sources and handle our own scenario planning. We didn't hire a London firm for this," stated a spokesperson in a General Mills press release.

Per data from Bloomberg, General Mills has $620.6 million in bonds coming due this year. Recent official figures show the conglomerate ended 2007 with $3.8 billion in long-term liabilities. Against a total revenue of nearly $21 billion, the group's total liabilities stood at $12.6 billion.

Looking ahead, Todorić faces $746.5 million in bond repayments in 2010, followed by a staggering $2.35 billion due in 2011.

(Bloomberg)

So let him sell. Just wait—someone on this forum was blathering on about how Todoric got everything handed to him by the government, but now it turns out he’s drowning in debt. From what I can read, he's being practically forced to liquidate. Either he stole it all, or the big wholesalers were in on the scam and managed to stay afloat.

Let him sell. Let him pay back the loans and move on with his life. But what happens to the workforce? The unemployment offices will be packed again. For crying out loud, there was actually some benefit to having that crook around. Don't just sit there complaining if Todoric's empire gets sold off—where is the working class supposed to turn then? Pray that Todoric manages to navigate these empty pockets without selling the companies and losing those jobs.

Aunt Elsa, let's team up and just buy out General Mills. I'm ready to put my whole house on the line...
What do you think? How would we run the place?🤷

Joshua Johnson11 said:Aunt Elsa, let's team up and just buy out General Mills. I'm ready to put my whole house on the line...
What do you think? How would we run the place?🤷

Exactly!!!!!🙏

Robert Hall7 said:So let him sell. Just wait—someone on this forum was blathering on about how Todoric got everything handed to him by the government, but now it turns out he’s drowning in debt. From what I can read, he's being practically forced to liquidate. Either he stole it all, or the big wholesalers were in on the scam and managed to stay afloat.

Let him sell. Let him pay back the loans and move on with his life. But what happens to the workforce? The unemployment offices will be packed again. For crying out loud, there was actually some benefit to having that crook around. Don't just sit there complaining if Todoric's empire gets sold off—where is the working class supposed to turn then? Pray that Todoric manages to navigate these empty pockets without selling the companies and losing those jobs.

Walmart is part of General Mills, which means it's the distribution chain for American products (as they love to call themselves), and that is absolutely vital.

Imagine some massive corporation buying out Walmart right now, keeping the employees but swapping out all the domestic goods for foreign imports... eeeh, now THAT would be a catastrophic disaster. That would knock far more people down to their knees, and by extension, wreck the entire production-processing-credit cycle. Not to mention the social upheaval...

The New York Times is a distributor of news and information. Now, just imagine a scenario where some malicious foreign entity buys them out. And who controls the flow and distribution of information? It's just like the control over media outlets, telecommunications hubs, banks....

Who, then, would protect the citizens from...

John Doe is sitting pretty in the hills now, enjoying that crisp Swiss air. Meanwhile, that $2 billion he allegedly made off and carried away remains completely unprovable....

Joshua Johnson11 said:Aunt Elsa, let's team up and just buy out General Mills. I'm ready to put my whole house on the line...
What do you think? How would we run the place?🤷

Aunt Marie, we’d be unstoppable. Honestly, the two of us alone would probably trigger a national crisis. We'd run the operation 24/7. The pay would be incredible, obviously, and we'd be working through Saturdays, Fridays, and Sundays. We'd hire staff who actually *wanted* to be there—people willing to pull those shifts for doubled hourly rates. We’d wipe out the competition completely. The only problem? The internet trolls would crucify us and call us elitists.

Look, Marie Murphy, I’ve got a better idea. Let's just wait a few years. I’m actually right in the middle of buying some new packaging and sorting machinery. I've started replacing my old orchards—sending the old trees to be turned into firewood while I plant the new ones. Once we fully integrate into the global market, let's put the whole company on the line. We could spend the rest of our lives without a single worry or headache.

What do you all think of my proposal? Let’s weigh both options. 🙂

Robert Hall7 said:Aunt Marie, we’d be unstoppable. Honestly, the two of us alone would probably trigger a national crisis. We'd run the operation 24/7. The pay would be incredible, obviously, and we'd be working through Saturdays, Fridays, and Sundays. We'd hire staff who actually *wanted* to be there—people willing to pull those shifts for doubled hourly rates. We’d wipe out the competition completely. The only problem? The internet trolls would crucify us and call us elitists.

Look, Marie Murphy, I’ve got a better idea. Let's just wait a few years. I’m actually right in the middle of buying some new packaging and sorting machinery. I've started replacing my old orchards—sending the old trees to be turned into firewood while I plant the new ones. Once we fully integrate into the global market, let's put the whole company on the line. We could spend the rest of our lives without a single worry or headache.

What do you all think of my proposal? Let’s weigh both options. 🙂

I'm in. It's a deal.👍

Robert Hall7 said:So let him sell. Just wait—someone on this forum was blathering on about how Todoric got everything handed to him by the government, but now it turns out he’s drowning in debt. From what I can read, he's being practically forced to liquidate. Either he stole it all, or the big wholesalers were in on the scam and managed to stay afloat.

Let him sell. Let him pay back the loans and move on with his life. But what happens to the workforce? The unemployment offices will be packed again. For crying out loud, there was actually some benefit to having that crook around. Don't just sit there complaining if Todoric's empire gets sold off—where is the working class supposed to turn then? Pray that Todoric manages to navigate these empty pockets without selling the companies and losing those jobs.

Logic? Well, sure, Todoric didn't get everything from the government... but Walmart, for instance, definitely did.

Robert Hall7 said:So let him sell. Just wait—someone on this forum was blathering on about how Todoric got everything handed to him by the government, but now it turns out he’s drowning in debt. From what I can read, he's being practically forced to liquidate. Either he stole it all, or the big wholesalers were in on the scam and managed to stay afloat.

Let him sell. Let him pay back the loans and move on with his life. But what happens to the workforce? The unemployment offices will be packed again. For crying out loud, there was actually some benefit to having that crook around. Don't just sit there complaining if Todoric's empire gets sold off—where is the working class supposed to turn then? Pray that Todoric manages to navigate these empty pockets without selling the companies and losing those jobs.

Long live Living Communism and socialist self-management under the leadership of Dr. Ivo Sanders and the Republican Party!

The Republican Party will be thriving if Todoric sells everything off and starts handing out pink slips.

If he sells him out to Sanders right away, everything is going straight to hell... 😁 NO OFFENSE

If you're such an expert, why don't you just buy it? Besides, how many people do you actually employ?

Douglas Robinson12 said:Logic? Well, sure, Todoric didn't get everything from the government... but Walmart, for instance, definitely did.

Long live Living Communism and socialist self-management under the leadership of Dr. Ivo Sanders and the Republican Party!

Are you actually sure you know what you're talking about?

Jonathan Morales79 said:Walmart is part of General Mills, which means it's the distribution chain for American products (as they love to call themselves), and that is absolutely vital.

Imagine some massive corporation buying out Walmart right now, keeping the employees but swapping out all the domestic goods for foreign imports... eeeh, now THAT would be a catastrophic disaster. That would knock far more people down to their knees, and by extension, wreck the entire production-processing-credit cycle. Not to mention the social upheaval...

The New York Times is a distributor of news and information. Now, just imagine a scenario where some malicious foreign entity buys them out. And who controls the flow and distribution of information? It's just like the control over media outlets, telecommunications hubs, banks....

Who, then, would protect the citizens from...

John Doe is sitting pretty in the hills now, enjoying that crisp Swiss air. Meanwhile, that $2 billion he allegedly made off and carried away remains completely unprovable....

I mean, how could General Mills have even bought The New York Times in the first place? How did that market competition agency—whatever they call it—ever allow that to happen? I find it hard to believe, especially considering the husband of the head of Agency through the Night became a very, very well-paid advisor for General Mills right after retiring from his role at ZV...

stormygull67 said:I mean, how could General Mills have even bought The New York Times in the first place? How did that market competition agency—whatever they call it—ever allow that to happen? I find it hard to believe, especially considering the husband of the head of Agency through the Night became a very, very well-paid advisor for General Mills right after retiring from his role at ZV...

That's what you call talent...🧐

Joshua Johnson11 said:That's what you call talent...🧐

And man, was I naive... just totally kidding myself! 😍

stormygull67 said:And man, was I naive... just totally kidding myself! 😍

Exactly. You always have to ask first instead of just diving in. There are too many "geniuses" around here...😵😵

Joshua Johnson11 said:Exactly. You always have to ask first instead of just diving in. There are too many "geniuses" around here...😵😵

I definitely agree—but honestly, it was getting so late that I didn't want to burden anyone with those heavy questions... especially since they’re the kind that keep me tossing and turning at night myself! 😍

stormygull67 said:I mean, how could General Mills have even bought The New York Times in the first place? How did that market competition agency—whatever they call it—ever allow that to happen? I find it hard to believe, especially considering the husband of the head of Agency through the Night became a very, very well-paid advisor for General Mills right after retiring from his role at ZV...

Who knows...

Anyway, ever since Todoric took over at The New York Times, the employees there have been getting absolutely screwed.

Honestly, thank God Migros didn't take over—we would’ve been bankrupt by now.

We can't just let Walmart fall into foreign hands. There's really no other way around it than having the government delay loan payments or even just bail out General Mills—kind of like how the government steps in to help major companies during a crisis.

The plan seems to be that they’re only offloading a portion of Walmart, while keeping enough equity to maintain control over the whole operation.
The real issue isn't just the ownership structure, though; it's the massive amount of debt Walmart is carrying. I suspect they’ll never actually see the valuation they're asking for...
Right now, suppliers are sitting on unpaid invoices for upwards of 250 days. That’s a pretty massive red flag, if you ask me....