JP Morgan may have taken on one of the more challenging advisory roles in Asia Pacific this year. It is to advise Jardine Matheson subsidiary, Dairy Farm, on its sale of Franklins supermarket chain in Australia. However, analysts think it could be a tough sale.
Franklins is one of Jardines many interesting investments. It lost $71 million in 2000, following a loss of $27 million in 1999. It has also made a few cock-ups that have led to provisions. For example, due to several years of undetected computer system glitches it also had to write-off $35.7 million for ruinous stock control. On Monday, Dairy Farm said it had written down $129 million of Franklin...
