Philip Green's planned £3bn offer for Safeway is understood to face referral to the Competition Commission, according to the Observer. Lawyers at top City law firms told the paper that five out of the six bidders would probably be referred after a report from the Office of Fair Trading is published in mid-March. One lawyer said: "Morrison may escape the regulatory net because its bid would not reduce the number of major supermarket chains operating in Britain from four to three." But others believe that even Morrison will be referred, turning the regulatory process into a strategic review of the sector as a whole.
Meanwhile, Sir Ken Morrison has had a £133,000 pay rise, bringing his salary to £505,000 excluding profit-related pay. Joint MDs Marie Melnyk and Bob Stott had 47% and 90% pay increases and will be paid £471,000 and to £429,000 respectively.

Morrisons has raised £1bn which could help the group to inject a large cash element into its current all-share bid for rival chain Safeway, according to the Sunday Telegraph.
News of the debt facility will increase speculation that Sir Ken plans to increase the value of his bid for the rival supermarket group, which has slipped from £2.9bn to £2.2bn as the Morrisons share price has fallen.

Sir Ken has vowed to keep his family’s 30% stake in Morrisons even if his bid for Safeway fails. Morrison, told The Business: "We are long term holders of the stock. I have no indication the family wishes to sell."

Today, The Independent said both Boots and Sainsbury want to scrap their health and beauty joint venture, as Sainsbury’s concentrates on making a successful bid for Safeway.

While the Financial Times reported that Morrisons could try and influence Safeway's shareholders decision on its bid by offering £750m in cash.

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