Asda's late plea in Safeway scrap

THE Competition Commission was due to deliver its report on the Safeway bid battle last night, amid lingering hopes that Asda may escape a ban on bidding.

A last-ditch attempt by Asda to persuade the Commission not to block its bid caused a surprise delay. In return for being allowed to join the £2.5bn-plus bid battle, Asda has offered to sell half the Safeway stores to smaller rival Wm Morrison if it wins.

The Commission has now altered its report in the light of the Asda plan. Hopes that it will somehow sneak through have lifted Safeway shares to 283 1/4p, up another 2 1/4p on Monday.

Earlier in the bid process, there were hopes that Asda and its parent Wal-Mart could raise the bidding to £4 a share. That is at least £1 above what shareholders can expect if Asda is blocked, as most retail experts think it will be. Tesco and Sainsbury are also unlikely to get the green light, with only Morrison - the only group to have tabled a formal offer - getting clearance.

The Trade Secretary usually takes 20 working days to rule on Commission reports. But this four-way situation is so complicated that it could take at least 30. After that the bid timetable will begin. Safeway is hoping for an early resolution, but others believe the affair could drag on until Christmas.