Green looking at Safeway books
Entrepreneur considers next move
October 21 2003
Philip Green is looking at new financial information supplied by Safeway as he considers a possible offer for the supermarket operator.
Bhs and Arcadia owner Green asked Safeway for the new information 10 days ago and received it last week. With no exisiting food retail interests, Green has been free to bid for Safeway since March, while other potential bidders faces a protracted investigation by the Competition Commission.
He told the Daily Telegraph his request for more information “means that I’m looking at it. I like to see the information. There’s nothing wrong with that. Is there?”
The ‘will-he-won’t-he’ speculation over Green’s interest in Safeway has kept the supermarket group’s shareholders with some hope that Morrisons will not be the only bidder. A bid from Green would almost cetainly raise the price.
While the Competition Commission report ruled out the sale of Safeway or any large numbers of its stores to a financial buyer, thought to be one strategy considered by Green, owning Safeway would provide a new sales channel for his clothing ranges. Green’s stores have seen increased competition from supermarkets, notably Tesco and Asda.
Morrisons has also received the new financial information. It is currently agreeing with the Office the arrangements for disposing of the 53 stores is must sell to acquire Safeway.
