Mystery broker markets Safeway shares
US-owned stakes offered to bidders, says report.
January 30 2003
A mystery intermediary has approached three possible cash bidders for Safeway offering to sell them almost a quarter of shares in the supermarket business, according to a report in the Daily Telegraph.
Wal-Mart, Philip Green and Kohlberg Kravis Roberts have all been approached by the go-between who suggested he could arrange for them to buy the 12 per cent stakes owned by American fund managers Fidelity and Alliance Capital Management.
Fidelity, which sold almost 5m shares on Tuesday, reducing its stake from 12.23 per cent to 11.77 per cent, told the newspaper: “We have not authorised anyone to sell our stake in Safeway.”
Safeway’s share price has soared since the announcement of an bid by rival group Morrisons earlier this month prompted a series of other potential bidders to come forward. However the price has slipped in recent days as it became clear that the UK competition authorities are likely to conduct a protracted investigation into any bid.
Alliance Capital is Safeway’s biggest shareholder, with 12.67 per cent. Other major shareholders include Scottish Widows with 5.8 per cent, Brandes with 5.9 per cent, UBS Global Asset Management with 5 per cent, and Threadneedle Investments with 3 per cent.
