Rival bidders for Somerfield are reported to have joined forces, leaving a bidding war for the group looking increasingly unlikely.
Icelandic group Baugur has joined forces with another bidder, fronted by entrepreneur Robert Tchenguiz and including private equity firm Apax, and Barclays Capital. Somerfield is now allowing prospective bidders to take a look at the books.
The new bidding group is now thought to be in a much stronger position to make a favourable offer to the retailer’s board.
Earlier this year, Somerfield rejected a £1.03 billion bid from Baugur, while a further bid was offer from the Tchenguiz group for £1.12bn.
The change leaves just three potential bidders, including London&Regional Properties and property group Topland.
