According to press reports, Kohlberg Kravis Roberts (KKR) has said its interest in Safeway is at an early stage, but it is considering making an offer. The venture capital firm is a specialist in buying undervalued companies and splitting them up to be sold off, or even bringing in new management teams. KKR bought the US Safeway group, the then-parent company of the UK Safeway chain in the mid-1980s. It subsequently sold of its shareholding bit by bit in the 1990s after taking the group public.

Morrison's has already filed its bid for Safeway with the Office of Fair Trading and Sainsbury's and Asda parent Wal-Mart have also expressed an interest.

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