Morrisons bid for Iceland may fall by the wayside

Morrisons' bid for Iceland may fall by the wayside

Morrison's bid for a controlling stake in frozen food retailer Iceland Foods may falter due to competition concerns, according to the Daily Telegraph.

Sources close to Iceland, quoted by the Telegraph, said that the company is worried that competition concerns could scupper any deal with another retailer. Last week it was reported that UK retailer Asda had abandoned its bid for a controlling stake in Iceland Foods, but will still seek to acquire some of its stores.

Morrisons has reportedly lined up a GBP1.44bn (US$2.21bn) consortium bid for 200 of Iceland's 730 stores with Waitrose, FarmFoods, and The Co-operative Group.

A spokesman from Morrisons said it is company policy to not comment on market speculation.

Failed Icelandic banks Landsbanki and Glitnir, which are selling a combined 77% stake in Iceland Foods, do not comment on bids.

Iceland Foods founder and chief executive Malcolm Walker and his management team, which together own the rest of the retailer, are also preparing a bid.