Somerfield gains from takeover speculation

Shares in supermarket group Somerfield continue to rise following news it has received more takeover approaches.

Speculation earlier this week suggested that property tycoon Robert Tchenguiz may be prepared to bid for the Bristol-based company.

Somerfield has now said it has "recently received further proposals regarding possible cash offers" and will make a further announcement in due course.

Somerfield shares were up 6.4 per cent at 207 pence by the close of trade on Thursday.

Earlier in the week, they had reached 201.5 pence - a five-and-a-half-year high - amid rumours that Tchenguiz and brother Vincent could make an offer.

Tchenguiz may wait before making a formal bid until the Competition Commission decides whether to approve Somerfield's recent purchase of 114 Safeway stores.

Reuters reports claim that property developers Ian and Richard Livingstone could also be ready to make a 190-pence-a-share offer.

And another potential suitor is Icelandic retail group Baugur, which last month said it was considering a new bid for Somerfield after its original £1bn takeover offer was turned down.

Somerfield rejected Baugur's initial plan, but Baugur already owns a five per cent stake in Somerfield.

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