Safeway is drawing up a contingency plan in case Morrison's ends up being the only company allowed to bid for the troubled group.
The Safeway board does not want to be in a position where a Morrison bid is the only option available to shareholders. This would leave the Bradford-based chain free to dictate the terms of any deal.
A senior Safeway source said: "Morrison is not renowned for paying more than it has to. You would not expect us to present shareholders with one opportunity."
Another Safeway insider played down buyout talk but stated that advisers had not been idle while the competition authorities had examined the Safeway bid
Meanwhile Morrison has suggested there was a possibility that a new offer could be lower than the one it made in January.
No comments yet