The Daily Telegraph reported that Safeway shares plunged 28.75p to 265.25p after Philip Green, the BHS and Arcadia owner, was the only suitor cleared to launch a takeover bid for Safeway.
The paper said the City fears that Green, who prides himself on not overpaying for businesses, will be tempted to make a cut-price cash offer for Safeway, while his rivals are tied up in a Competition Commission investigation.
The Guardian said the government had handed Green a headstart in the battle for control of the supermarket group - and dealt a potentially fatal blow to the ambition of rival bidder Morrisons.
The paper said it was a foregone conclusion that bid proposals tabled by Tesco, Sainsbury and Asda would face a full commission enquiry, but the DTI's decision to order scrutiny of Morrisons bid on the advice of the Office of Fair Trading was unexpected.
The Times reported that investors, food retailers and competition experts rounded on the OFT and the government after DTI secretary Patricia Hewitt, referred all four potential supermarket bids for Safeway to the Competition Commission.
The paper suggested that the inquiry into the battle for Safewway would be led by Sir Derek Morris, the CC’s chairman, and who scrutinised the UK supermarket industry in 2000.
The Times added that industry and City observers had assumed that Morrisons bid would be cleared subject to certain undertakings. And that analysts suggested that Green would now make as low a bid as possible, since any deal he announces will be the only clear proposal on offer.
The paper said the City fears that Green, who prides himself on not overpaying for businesses, will be tempted to make a cut-price cash offer for Safeway, while his rivals are tied up in a Competition Commission investigation.
The Guardian said the government had handed Green a headstart in the battle for control of the supermarket group - and dealt a potentially fatal blow to the ambition of rival bidder Morrisons.
The paper said it was a foregone conclusion that bid proposals tabled by Tesco, Sainsbury and Asda would face a full commission enquiry, but the DTI's decision to order scrutiny of Morrisons bid on the advice of the Office of Fair Trading was unexpected.
The Times reported that investors, food retailers and competition experts rounded on the OFT and the government after DTI secretary Patricia Hewitt, referred all four potential supermarket bids for Safeway to the Competition Commission.
The paper suggested that the inquiry into the battle for Safewway would be led by Sir Derek Morris, the CC’s chairman, and who scrutinised the UK supermarket industry in 2000.
The Times added that industry and City observers had assumed that Morrisons bid would be cleared subject to certain undertakings. And that analysts suggested that Green would now make as low a bid as possible, since any deal he announces will be the only clear proposal on offer.
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