Somerfield seeks OFT guidance on Sainsbury’s interest
Details of 171 stores sought
June 23 2003
Somerfield has asked the UK Office of Fair Trading for details of the 171 stores Sainsbury’s is seeking clearance to buy.
Sainsbury’s is currently blocked from making an approach to Somerfield, after its behind-the scenes support for the bid by John Lovering and Robert Mackenzie became official when Somefield included Sainsbury’s in its statement rejecting the offer.
The OFT concluded two weeks ago that Sainbury’s is covered by Takeover Panel rules which prevent a new bid for six months, unless a new bidder comes forward. Sainsbury‘s had argued that its discussions with John Lovering’s consortuium were informal and that its was never officially part of the bid.
However, Sainsbury’s has officially applied for OFT clearance for the purchase of 171 stores, which would strengthen its position when the ban expires of if a new bid is made.
Somerfield has now written to the OFT asking for detail of which stores from its 1300-strong Somerfield and Kwik Save chain are involved.
The Guardian newspaper reports that Somerfield is understood to be perplexed that it has not had a direct approach from Sainsbury’s, while Sainsbury’s chief executive Sir Peter Davis is said to have been incensed when Somerfield named Sainsbury as part of the Lovering/Mackenzie deal.
