The supermarket industry is already in the grip of takeover fever with a five-way takeover battle for Safeway, the country's fourth-largest chain, already under way. Wal-Mart or Sainsbury, which are in the running for Safeway, are believed by analysts to be potential bidders for Somerfield. The idea is that they could be looking for consolation prize if they fail to get Safeway.
There is also speculation that retail entrepreneur Philip Green may have shifted his attention from Safeway to Somerfield. The other possible Somerfield predator is Icelandic retailer Baugur, which has a 3% stake in Somerfield.
Shares in Somerfield have risen sharply in the last few days on speculation that it may be the next retail group to be taken over. Stock is now trading at around 90p valuing the group at £435 million ($683.8 million) but analysts believe a bid would have to be between 100p and 110p to be successful.
Somerfield, which merged with Kwik Save in 1998, has 1300 stores.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
