Morrisons' £2.4bn bid for Safeway received a boost yesterday when the company issued a bullish trading statement ahead of its offer document posted today.
In the four weeks to 26 January like-for-like sales were up 5.2% on last year compared with a 2.4% rise in the previous six weeks. Morrison shares rose 7% to 169.5p on the news, valuing its bid for Safeway at 224p a share, according to The Independent
Morrisons chairman, Sir Ken Morrison, told the paper he had no immediate plans to increase the bid. "We're not the kingmaker, and we're not the stalking horse," he said. "We are the main event."
The Guardian reports that Sir Ken Morrison came out fighting in support of his bid for Safeway and was determined to press ahead with the offer. He said: “We're not about to pocket our £30m break fee and head back to Bradford with our tail between our legs. We wouldn't have started on this if we thought we couldn't win."
Speaking at Morrisons' superstore in Grays, Essex, Sir Ken told the paper he has had no contact with Sainsbury's, but conceded there had probably been contact between the two groups' respective financial advisers.
Sir Ken told the Telegraph that there had been a lot of sound and fury about other indicative offers. And “if imitation is the sincerest form of flattery, then we've been flattered five times over".
He added: “We believe very strongly that four players are better than three. A takeover of Safeway by any of the three majors [Tesco, Sainsbury or Asda] would eliminate competition."
Asked why he was making a bid for a company more than twice Morrisons’ size, Sir Ken quipped: "The real reason we're doing this is that we're all masochists."
In the four weeks to 26 January like-for-like sales were up 5.2% on last year compared with a 2.4% rise in the previous six weeks. Morrison shares rose 7% to 169.5p on the news, valuing its bid for Safeway at 224p a share, according to The Independent
Morrisons chairman, Sir Ken Morrison, told the paper he had no immediate plans to increase the bid. "We're not the kingmaker, and we're not the stalking horse," he said. "We are the main event."
The Guardian reports that Sir Ken Morrison came out fighting in support of his bid for Safeway and was determined to press ahead with the offer. He said: “We're not about to pocket our £30m break fee and head back to Bradford with our tail between our legs. We wouldn't have started on this if we thought we couldn't win."
Speaking at Morrisons' superstore in Grays, Essex, Sir Ken told the paper he has had no contact with Sainsbury's, but conceded there had probably been contact between the two groups' respective financial advisers.
Sir Ken told the Telegraph that there had been a lot of sound and fury about other indicative offers. And “if imitation is the sincerest form of flattery, then we've been flattered five times over".
He added: “We believe very strongly that four players are better than three. A takeover of Safeway by any of the three majors [Tesco, Sainsbury or Asda] would eliminate competition."
Asked why he was making a bid for a company more than twice Morrisons’ size, Sir Ken quipped: "The real reason we're doing this is that we're all masochists."
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