Morrisons has dismissed Asda's last minute swoop for 70 Safeway stores, calling it a derailing tactic, which will not affect the price.

Sources close to chairman Sir Ken Morrison, said: “We're certainly not quaking in our boots. In fact, we're not taking it at all seriously. Given the thoroughness of the Competition Commission we find it highly unlikely that Asda would receive approval to buy 70 Safeway stores.”

The source added: “Sir Ken is an extremely shrewd man. If it was Safeway who leaked the Asda proposal, then they really don't know their man. It won't affect what he offers for Safeway. He will make an offer on what he believes the business is worth.”

Morrisons, who have until December 29 to make its new bid, is expected to enter talks with Safeway shortly over the new offer.

One analyst said: “This latest effort looks like a plea from Safeway to persuade Sir Ken Morrison to pay up. Safeway is trying to demonstrate that there is an alternative, but it only has one real option: agree a price with Morrisons.”

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