What The Papers Say: KwikSave merger sparks speculation Graph (omitted)

The London Stock Exchange round-up in the FT 11 February, dismissed speculation about a possible merger between food retailers KwikSave and Somerfield as a ’low grade rumour’. Within a week, merger talks were confirmed between ’two of the weakest players in Britain’ (the Independent, 17 February).

The London Stock Exchange round-up in the FT 11 February, dismissed

speculation about a possible merger between food retailers KwikSave and

Somerfield as a ’low grade rumour’. Within a week, merger talks were

confirmed between ’two of the weakest players in Britain’ (the

Independent, 17 February).



An unnamed analyst, quoted in the Times, summed up the general media

view as ’negative plus negative still makes negative’.



Kirsty Hamilton, writing in the Sunday Times, saw it as the start of ’a

shake-out in the supermarkets’ with both Iceland and Safeway mooted as

prime takeover material. With poor results and profit warnings, the

latter would face an uncertain future at the hands of the DTI if it

wants to find comfort in the arms of Asda or anyone else.



One side note is that staff are being encouraged to come up with a name

for the new group and a crate of own label champagne is on offer to the

winner - certainly cheaper than hiring Wolff Olins to come up with a

Diageo-type name.



Evaluation and analysis by CARMA International. Cuttings supplied by The

Broadcast Monitoring Company. ’What The Papers Say’ can be found at:

www.carma.com.



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