Safeway ruling may be further delayed
‘Slippage’ in process says report
September 8 2003
Potential bidders for supermarket chain Safeway may face another delay in the ruling on the takeover battle.
The Guardian newspaper reports that trade and industry secretary Patricia Hewitt, who is due to issue her ruling this month, may extend the 30 working days target for issuing her ruling.
A DTI spokeswoman said: “That is only an administrative target. It was always factored in that there may be some sort of slippage.”
Tesco, Asda, Sainsbury’s and Morrisons were all referred to the Competition Commission, which delivered its report last month, slightly later than expected after Wal-Mart owned Asda asked for an additional meeting.
Bhs owner Philip Green is clear to bid at any time, but is thought to be awaiting the government’s verdict before making any move. Neither Asda nor Morrisons has commented on reports that Wal-Mart owned Asda might back a successful Morrisons bid with cash in order to see off a Green bid. Asda is said to want to secure around 100 Safeway stores is return for supporting Morrisons.
Meanwhile, the Daily Telegraph reports that Morrisons is interviewing potential candidates to become non-executive directors. Executive chairman Sir Ken Morrisonhas always resisted adding non-execs to the board, but said he would do so if the Safeway bid was successful.
