Sainsbury’s open to joint Safeway bid
Scope of inquiry likely to limit single buyer
May 22 2003
Sainsbury’s is prepared to work with another supermarket operator on a bid for Safeway in order to take a share of the stores.
Chief executive Sir Peter Davis now believes the wide scope of the investigation into potential bids for Safeway by the Competition Commission makes it increasingly unlikely that a trade bidder will be allowed to buy the business without being ordered to sell of significant numbers of stores.
Sir Peter said Sainsbury’s would not consider an indicative bid before the commission makes its ruling but said: “We would be very happy to talk to other parties when we know what might be possible.”
Sir Ken Morrison also indicated this week that he would consider a joint bid for Safeway after his company’s inclusion in the Competition Commission inquiry.
Meanwhile, a meeting between Safeway and Bhs and Arcadia Philip Green has been postponed, according to the Financial Times, which said Green was ill.
Safeway has asked to meet with Green, the only declared potential buyer currently free to bid, in order to discuss his plans. Green has requested more financial information from the supermarket operator before deciding whether to proceed.
Green has also asked the takeover panel to rule whether the trade bidders for Safeway, which include Tesco, Morrisons, and Asda as well as Sainsbury’s, would be allowed to table potentially higher bids while the official investigation continues.
