Kaufhof prepares to become independent

Metro earlier said it no longer sees Kaufhof's 126 domestic outlets and 15 stores in Belgium as part of its core business, but so far has not said what options it is considering for the unit.

Metro AG.'s
Kaufhof department store chain is preparing to become an independent
company rather than being sold to an investor, unit head Lovro Mandac
told Die Welt newspaper in an interview.

'With 3.6 billion euros in sales, we
are big and strong enough to be on our own,' Mandac said.

Kaufhof may be sold off to an investor,
according to media speculation, and Arcandor AG. chief executive
Thomas Middelhoff has said his company would be interested in
Kaufhof's operating business, which is valued at about 1 billion
euros. Kaufhof also has about 2 billion euros worth of real estate.

But Mandac said he does not understand
why 'public discussions are always centred around options by which
Kaufhof would merge with someone or be bought by someone.'

He said the company is looking at
options to expand the Kaufhof chain to other countries bordering
Germany besides Belgium. 'Especially in Eastern Europe, there are
many regions that have neglected their inner cities,' he said.