Mitre 10 mulls two separate proposals

Hardware chain Mitre 10, which is the target of a bid for control by Metcash Ltd, says it is considering two separate proposals to invest in the company.

After an extensive process initiated by the board, Mitre 10 received two separate proposals from parties interested in investing in the company, the cooperative said in a statement on Monday.

Mitre 10 did not specify whether one of the proposals was from grocery wholesaler and distributor Metcash, which made its offer on Friday.

"Once the board considers the proposals, a decision will be made on a preferred partner," chief executive Mark Burrowes said in the statement.

"Members will then be issued with an information memorandum and recommendations, ahead of a vote.

"Members will have the final say on the future of Mitre 10."

On Friday, Metcash proposed to buy 50.1 percent of the Mitre 10 Group initially, with the potential to acquire 100 percent in either 2012 or 2013.

The move by Metcash came after the country's biggest retailer Woolworths received the green light from the competition regulator to mount a joint takeover of Danks Holdings Ltd to take on Wesfarmers' Bunnings in the hardware market.

Woolworths earlier this month received Australian Competition and Consumer Commission approval for its multi-billion-dollar joint bid with the US home-improvement chain Lowes for hardware chain Danks.

Shares in Metcash gained five cents, or 1.1 percent, to $4.61 by 1134 AEDT.

- AAP