Banks warned on supermarket share tipping
August 1 deadline may highlight early decision on Safeway
July 22 2003
Banks advising potential bidders for Safeway have been told to restrict their investment advice on supermarket stocks from August 1.
The ruling by the Takeover Panel has been taken in some quarters as a signal that Trade & Industry Secretary Patricia Hewitt may be ready to make an early decision on which of the four potential bidders currently under investigation will be allowed to proceed.
Takeover rules say that banks advising on bids should restrict stockbroking advice for a month before the official ruling is made. The Competition Commission is due to submit its report to the minister by August 12.
Tesco, Sainsbury’s, Asda and Morrisons are all under investigation. Morrisons, the only one of the four to have made formal bid, is increasingly being seen as the most likely contender due to the complex competition issues at stake. Philip Green, owner of the Bhs and Arcadia chains, has already been cleared to bid.
