Bid rumours boost Somerfield

7 March 2000



Bid rumours boost Somerfield

SHARES in food retail chain Somerfield jumped more than 27% on Monday (6 March) after the chain admitted it was in talks with potential buyers.

In a statement, Somerfield said it had received an approach from a third party and had since “extended discussions to a limited number of other parties”.

This came ahead of an extraordinary general meeting to approve the sale of 46 of Somerfields larger stores as it tries to position itself as a neighbourhood food retailer.

The Financial Times reports that the most likely bidders would be venture capital groups which would take the group private.

Somerfield has been underperforming since it merged with Kwik Save two years ago.

In the past, farmers leaders have accused the chain of not doing enough to support British agriculture, and Somerfield stores have been the site of numerous producer protests.

• Pig mens unfavourite retailer backs Labour conference, FWi, 08 September, 1998
• Somerfield merger to create 5000 jobs, FWi, 09 July, 1998
• Financial Times 06/03/2000 page 24
• The Daily Telegraph 06/03/2000 page 37
• The Independent 06/03/2000 page 17