UPDATE 1-Wal-Mart eyes bid for Indonesia Matahari units-sources

* Strong line-up for Matahari assets

* Bankers estimates deal to fetch between $800 mln-$1 bln

* Matahari shares up 70 pct in 2010, outpacing broader market

(Adds details, background)

By Denny Thomas

HONG KONG, Nov 4 (BestGrowthStock) – Wal-Mart Stores Inc (WMT.N: ), the
world’s top retailer, has joined the race to buy Indonesian
retailer Matahari’s (MPPA.JK: ) hypermarket business, stirring up
competition for the $1 billion auction in Southeast Asia’s
biggest economy.

Wal-Mart is stepping up international growth especially in
the wake of more than a year of declining U.S. same-store sales
at its namesake stores.

Sources told Reuters on Thursday that Wal-Mart has hired
Barclays Capital (BARC.L: ) to advise it on the transaction. The
mandate is a coup for Barclays, which is building up its
investment banking business.

Matahari is selling Hypermart, Indonesia’s second-biggest
hypermart chain after PT Carrefour Indonesia, to focus on its
core healthcare and property assets.

One banker said he expects the deal to fetch between $800
million to $1 billion.

Wal-Mart is expected to compete in the auction with South
Korea’s Lotte Shopping (023530.KS: ) and private equity fund
Carlyle Group [CYL.UL]. [ID:nSGE6A104Z].

The auction provides an opportunity to buyout funds and
global and regional retailers to get a foothold in Indonesia,
where consumer spending is expected to rise alone with strong
economic growth.

Matahari shares are up about 70 percent in 2010, reflecting
some of those growth expectations, far outpacing a 42 percent
rise in benchmark Jakarta stock index (.JKSE: ).
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For Q+A on Indonesia's lure to investors: [ID:nJAK165012] For an analysis on Indonesia inflows: [ID:nJAK423860] Political risks in Indonesia: http://r.reuters.com/pyt92n For a dealtalk on consumption in Indonesia [ID:nSGE69I0DF] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

It was unclear whether Wal-Mart had submitted a formal offer.
Sources previously told Reuters that Lotte and Carlyle have
submitted first-round bids. Source were not allowed to speak on
the record because details of the auction remain private.

Wal-Mart did not respond to phone calls seeking comment,
while Barclays Capital declined to comment.

Bank of America (BAC.N: ), which is advising Matahari on the
deal, was not available for comment.

A strong line-up for Matahari’s auction comes ahead of
Friday’s deadline set by French retailer Carrefour (CARR.PA: ) for
the planned sale of its Southeast Asian assets in a $1 billion
deal.

Japan’s biggest retailer Aeon Ltd (8267.T: ) and private equity
group Navis Capital are likely to submit second-round bids,
sources previously told Reuters. [ID:nSGE69R04I].
(Reporting by Denny Thomas; Additional reporting Bradley Dorfman
in Chicago; Editing by Ken Wills)

UPDATE 1-Wal-Mart eyes bid for Indonesia Matahari units-sources