The consortium whose bid for Somerfield was rejected last week is reported to be considering an improved bid for the UK supermarket chain.

Retail entrepreneurs John Lovering and Bob Mackenzie had their 103p (US$1.64) per share bid rejected by Somerfield because the board believed that the bid did not reflect the value of the business.

The consortium has now met with advisers Bridgewell and bankers HBOS to plan how to proceed and is believed to be re-evaluating its offer, reported the Independent on Sunday.

Lovering is believed to be opposed to a hostile takeover and only wishes to proceed with the approval of Somerfield’s board. Analysts say a revised bid is likely to be in the region of 110p to 120p per share.