IN BRIEF (Page 16)

Coles rebound 'unlikely'

Wesfarmers Ltd, Australia's second-largest retailer, is "unlikely" to turn around the performance of its Coles unit because of increased spending by Woolworths Ltd, Merrill Lynch & Co said.

Merrill Lynch cut its recommendation on Wesfarmers to "underperform" from "neutral", analysts led by David Errington said in a note to clients. Errington last week cut Sydney-based Woolworths to "neutral" from "buy", citing the retailer's plans to spend A$2 billion ($1.4 billion) annually for "a number of years" to convert stores to a new format and extend market share gains from Perth-based Wesfarmers.