Grocery retailer Somerfield has rejected a takeover approach from Icelandic retail group Baugur.

“It would not be in the interests of shareholders to give further consideration to this proposal,” Somerfield’s Board said in a statement.

On 9 February 2005, Somerfield announced that it had received an approach fro Baugur on  an offer worth around £1bn (US$1.9bn).

“The Company has recently made a number of strategic acquisitions, and is in the process of finalising negotiations for the proposed purchase of approximately 140 Texaco forecourt convenience stores,” it said “The Board is confident that these moves, together with the store regeneration programme, will significantly strengthen Somerfield’s competitive position.”