It is still not known how much R20—the joint venture's formal name--will bid but it is expected to be in excess of a previous Tchenquiz bid of euro 1.6 billion ($2.1 billion) that was rejected by the Somerfield board. Prior to the joint venture, Bauger also made an unsuccessful run at Somerfield.
If the bid is a success, Baugur is expected to focus on the retail operation while Tchenguiz will turn his attention to the group's undervalued property portfolio. Last year's report valued the portfolio at ($1.5 billion), but the last revaluation was in 1996.
The forming of a joint venture--which also includes Barclays Capital and Apax Partners--means R20 will now face Ian and Richard Livingstone's London & Regional Properties in the battle for the chain. Topland Estates is also thought to be considering a bid for the group.
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