The board of directors of UK supermarket group Somerfield will meet tomorrow [Wednesday] to debate the takeover approach submitted by entrepreneur John Lovering.

Lovering has made an informal offer to buy Somerfield for £510m (US$805m) or 103p per share. Lovering is backed by Bob Mackenzie, former chief executive of National Car Parks, and BRIDGEWELL, the corporate finance boutique.

Meanwhile, at the weekend The Observer newspaper suggested that Somerfield executive chairman John Von Spreckelsen had deliberately undervalued the group’s property portfolio by up to £1bn.

Such a sizeable undervaluation will prompt shareholders to give even greater thought to the approach from Lovering. A buyer could sell hundreds of stores, many of which are the popular convenience store size

.

Last week, observers suggested 103p was too low, suggesting that a fair price would be closer to 110p and that the approach may prompt more interest. However, no one else is yet known to have entered the fray.