Asda appoints adviser on Somerfield acquisition
Declared bidders continue due diligence
Asda has appointed investment bank Lazard to explore a potential bid for rival Somerfield, according to reports.
The [i]Financial Times [/i]quotes people close to the situation as saying that Wal-Mart owned Asda is considering an approach for Somerfield as it seeks to expand market share.
The newspaper said it was unclear whether Britain’s second-biggest supermarket group would go ahead with an offer. Some reports have suggested Asda could be interested in teaming up with one of the two groups already conducting due diligence on Somerfield.
They include the consortium made up of Icelandic retail group Baugur, property tycoon Robert Tchenguiz, private equity firm Apax and Barclays Capital, as well as property group London and Regional.
Property group Topland, which specialises in store sales and leaseback deals, and has worked with Marks & Spencer and Tesco, is also known to be considering a bid.
The latest informal deadline for bids imposed by Somerfield passed yesterday without either group formalising their bid. According to a report in the [i]Guardian[/i], Somerfield has now decided not to impose any more hurdles on the two groups.
