UK supermarket chain Morrisons has reportedly said it cannot rule out launching a hostile bid for rival Safeway if the two companies fail to agree on a suitable price.
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Yorkshire-based William Morrison was the only supermarket operator given permission by the Department of Trade and Industry to launch a bid for Safeway, following a lengthy competition inquiry.
After the DTI’s decision there followed reports that Safeway is insisting that Morrisons raise its offer to £3.5bn (US$5.9bn), from its initial now-lapsed bid of £2.9bn.
However, Morrisons has said that if the two parties cannot agree on a recommended offer, it could not entirely rule out a hostile takeover, reported the Independent.
This potential outcome is not expected, however, as there is value in a takeover offer being recommended by Safeway, the paper reported, citing sources close to Morrisons.
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By GlobalDataA new bid by Morrisons is not expected for some time, as the retailer still has to agree with the Office of Fair Trading details of the 53 store disposals required for a deal to go ahead.
