The threat of legal challenge from Asda's US parent Wal-Mart could delay publication of the Competition Commission ruling on the takeover of Safeway.
The Sunday Telegraph said the report is understood to recommend that Asda, Sainsbury and Tesco should be blocked from buying Safeway, which would allow Morrisons to bid.
A government spokesman told the paper that officials at the Department of Trade were going through the report “line by line”, to stave off the possibility of Wal-Mart seeking a judicial review at the Competition Appeal Tribunal.
Asda could link up with a financial bidder if its bid for rival Safeway was to be blocked.
The Sunday Times reported that If, as expected, it is prevented from acquiring Safeway on its own, it could secure a deal to acquire a tranche of stores from a private-equity bidder or from retail tycoon Philip Green. If Morrison is allowed to proceed, private-equity houses such as Kohlberg Kravis Roberts, which has previously expressed interest in Safeway, could mount counterbids. A deal to sell some stores to Asda could help to finance a takeover.
Once the Safeway auction saga is concluded Sainsbury could be the next bid target, according to The Business.
The paper said that US private equity group Kohlberg Kravis Roberts could be a likely private equity suitor.
Meanwhile, The Guardian said that Safeway was drawing up plans for a management buyout if the Competition Commission blocks its takeover.
The paper said the MBO was regarded internally as backstop should the commission prevent even Morrisons from launching a full bid or demand too many store disposals.
The Sunday Telegraph said the report is understood to recommend that Asda, Sainsbury and Tesco should be blocked from buying Safeway, which would allow Morrisons to bid.
A government spokesman told the paper that officials at the Department of Trade were going through the report “line by line”, to stave off the possibility of Wal-Mart seeking a judicial review at the Competition Appeal Tribunal.
Asda could link up with a financial bidder if its bid for rival Safeway was to be blocked.
The Sunday Times reported that If, as expected, it is prevented from acquiring Safeway on its own, it could secure a deal to acquire a tranche of stores from a private-equity bidder or from retail tycoon Philip Green. If Morrison is allowed to proceed, private-equity houses such as Kohlberg Kravis Roberts, which has previously expressed interest in Safeway, could mount counterbids. A deal to sell some stores to Asda could help to finance a takeover.
Once the Safeway auction saga is concluded Sainsbury could be the next bid target, according to The Business.
The paper said that US private equity group Kohlberg Kravis Roberts could be a likely private equity suitor.
Meanwhile, The Guardian said that Safeway was drawing up plans for a management buyout if the Competition Commission blocks its takeover.
The paper said the MBO was regarded internally as backstop should the commission prevent even Morrisons from launching a full bid or demand too many store disposals.
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