Takeover rumours lift Somerfield shares

13 June 2000



Takeover rumours lift Somerfield shares

SHARES in the ailing Somerfield supermarket chain rose on Monday on the back of takeover speculation, , reports the Financial Times

It was rumoured that private US venture capital group Apollo had been working on a bid, valuing the company at 400m, or 80p a share.

The group was forced to admit it had considered interest from unnamed venture capital groups earlier in the year, but decided against further discussions.

Shares rose from 50p on Fridays close to 69p, but fell back to 57p when Somerfield said its attitude to interest from venture capital groups remained unchanged.

In May Somerfield delivered a step profit warning with news of steep declines in fourth quarter sales.

The group has been in difficulties since it merged with discount retailer Kwik Save two years ago.