Wm Morrison is set to step up its battle for Safeway on the back of its best set of results since joining the stock market in 1967.
The supermarket chain has let it be known that profits for the first six months of the year will be around £130 million, 13 per cent higher than the same period in 2002 despite reported costs of between £5m-£7m paid to advisers on the bid for its high street rival.
Like-for-like sales have rocketed by 8.5 per cent in the last six months, which will bolster confidence amongst shareholders, some of who have voiced concern that the bid for Safeway may be a bridge to far for the Bradford-based operator.
Morrison continues to be favourite to gain clearance to progress its bid from the competition commission, ahead of the UK's top three Tesco, Asda and Sainsbury's, although it has been widely reported that Asda could be ready to accept 70 Safeway stores in a £200m package that would help its Yorkshire neighbour finance the deal.
Meanwhile, the Tesco bubble continues to fly higher. Interim profits are expected to rise by almost £100m when announced this week, with underlying UK sales up by 6.5 per cent.
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