Asda has remained coy on reports that it has appointed investment bank Lazard to help it assess an offer for frozen-food retailer Iceland Foods.
Reports emerged over the weekend that Asda has hired Lazard to help it assess the merits of a bid for the chain, which has around 750 stores in the UK.
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Landsbanki formally revealed its intention to sell its stake in Iceland on 20 May. Industry watchers have suggested the chain may have a price tag of GBP1.8-2bn.
Morrisons was swiftly named as a possible buyer, but industry insiders have suggested that Asda may be a rival bidder.
Shore Capital analyst Clive Black also suggested that Asda would have the most to gain among the UK’s major grocers if it acquired Iceland.
“Asda probably has greater need than Morrisons to acquire smaller stores with its relative dearth of such outlets and corresponding dependence upon 40,000 sq ft units and above.” said Black.
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By GlobalDataHowever, other analysts have suggested that all of the country’s major grocery players, aside from Tesco, would at least be considering a bid for the chain.
Any retailer’s bid is likely to face stiff competition from founder and chief executive Malcolm Walker, who has confirmed that he is interested in purchasing Landsbanki’s 67% stake in the chain.
An Asda spokesperson declined to comment on the reports.
