The purchase of a 37.6% stake in the ailing Dutch chain gives the French retailer a foothold in another western European market. And at just E200m, it won't break the bank. However, there was surprise at the ambitious timetable Casino has set itself for turning things round at Laurus. "Talking about the deal being earnings accretive by 2003 seems pretty optimistic considering most retailers would not touch Laurus with a bargepole," said one analyst. "However, this obviously has potential if Laurus can just get back to the operating figures it was achieving a couple of years ago. Effectively, Casino is getting control of a E4bn company for E200m." Schroder Salomon Smith Barney analyst Matthias Reschke said: "From Casino's point of view it's not a huge investment and it refocuses the spread of the group more on western Europe." The number two player in the Dutch market behind Ahold, Laurus has been the subject of constant takeover speculation in recent months after its turnaround strategy backfired and it was plunged into financial crisis. A spokeswoman said Casino would become involved in managing the business from day one and has already announced plans to sell off cash draining operations in Spain and Belgium. After 12 months, it will look at developing new retail concepts in the Netherlands, with expansion plans to follow. Joint purchasing will begin almost immediately. The deal struck between Laurus, Casino, and Laurus' main banks ABN Amro, Rabobank and ING, will raise E400m from new shares, and effectively places Laurus in Casino's hands. Banks will hold 13.4% of Laurus' share capital, which Casino has the option to buy, taking its stake to 51%. The money will be raised through a public share offer of E130m, a cash subscription of E200m from Casino and from the conversion of Laurus' existing debts. {{NEWS }}