Rona May Get Takeover Bid from Lowe's

Montreal, Quebec, July 18, 2007--Canadian hardware retailer Rona Inc. could face a takeover bid from Lowe's within the next six months, says an industry watcher, according to the Vancouver Sun.

The newspaper reported that hardware and home-renovation retail growth is slowing because of maturing markets in many areas, and Desjardins Securities Inc. analyst Keith Howlett. said there is a 40 percent chance of Lowe's bidding for Rona at up to $33 a share, a 27-percent premium on its closing price on Tuesday.

A Lowe's takeover of Montreal-based Rona has been widely debated since the giant U.S. retailer entered Canada in 2005, saying it would build big-box stores from the ground up to compete with the dominant Home Depot.