Wal-Mart has approached several of Safeway’s large shareholders in an attempt to buy a stake in the supermarket group ahead of the Department of Trade and Industry ruling on bidders for the chain.
According to the Sunday and Daily Telegraph Wal-Mart could buy up to 29.9% of Safeway, a stake which would enable it to block a rival bid. The US company is understood to be willing to pay a premium for a significant holding. Under takeover code rules, Wal-Mart is the only bidder still able to buy shares in Safeway, although it would be blocked if its bid is referred to the Competition Commission.
The Sunday Times reported that the five potential bidders for Safeway were in talks with the Takeover Panel about how to announce bids for the chain if referred to the Competition Commission.
Corncern has been raised that the launch of a conditional bid could create a false market in Safeway shares. All five offers may be referred, with Morrisons and Philip Green getting OFT clearance, but with conditions. In which case, Asda, Sainsbury and Tesco may launch formal bids conditional on clearance by the regulator, the paper said.
The Independent said that the stockbroking arm of the French bank Crédit Agricole, Cheuvreux, has criticised Safeway’s accounting policies in a report of analysts' research.
The report questions Safeway's profitability and its accounting methods and could be published today.
The paper said Safeway has instructed its legal advisers, Clifford Chance, to get hold of the note - a move one adviser played down as designed to make sure the note did not contain any "factual inaccuracies".
Mike Dennis, the Cheuvreux analyst that wrote the research note, met with Safeway's finance director, Simon Laffin, last week. But the two are not thought to have discussed accountancy-related issues.
Safeway has not seen the note a spokeswoman for the chain told the paper. She added: “However, we would defend all our accounting policies vigorously."
According to the Sunday and Daily Telegraph Wal-Mart could buy up to 29.9% of Safeway, a stake which would enable it to block a rival bid. The US company is understood to be willing to pay a premium for a significant holding. Under takeover code rules, Wal-Mart is the only bidder still able to buy shares in Safeway, although it would be blocked if its bid is referred to the Competition Commission.
The Sunday Times reported that the five potential bidders for Safeway were in talks with the Takeover Panel about how to announce bids for the chain if referred to the Competition Commission.
Corncern has been raised that the launch of a conditional bid could create a false market in Safeway shares. All five offers may be referred, with Morrisons and Philip Green getting OFT clearance, but with conditions. In which case, Asda, Sainsbury and Tesco may launch formal bids conditional on clearance by the regulator, the paper said.
The Independent said that the stockbroking arm of the French bank Crédit Agricole, Cheuvreux, has criticised Safeway’s accounting policies in a report of analysts' research.
The report questions Safeway's profitability and its accounting methods and could be published today.
The paper said Safeway has instructed its legal advisers, Clifford Chance, to get hold of the note - a move one adviser played down as designed to make sure the note did not contain any "factual inaccuracies".
Mike Dennis, the Cheuvreux analyst that wrote the research note, met with Safeway's finance director, Simon Laffin, last week. But the two are not thought to have discussed accountancy-related issues.
Safeway has not seen the note a spokeswoman for the chain told the paper. She added: “However, we would defend all our accounting policies vigorously."
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