Morrison slams door on tie-up talk

NO-FRILLS supermarket chain William Morrison is determined to stay independent. Executive chairman Sir Ken Morrison rejects any suggestion a deal with Safeway is imminent. 'We have not had any discussions,' he said. Joint group managing director Bob Stott adds: 'We can't buy Safeway. We haven't got the money. And we are not up for sale.'

Some think Morrisons, with its northern heartland, would be an ideal fit with largely southern-based Safeway. It would also give Safeway an alternative to an unwelcome approach from Asda owner Wal-Mart.

Morrisons underlined its position as one of the best-run companies in the sector on Thursday, with another stunning set of figures. Lifting half-time profits 16% to a record £114.5m, Morrisons is on track for its 36th successive year of rising sales and profits since it went public in 1967. The dividend rose 25% to 0.45p.

Its winning formula consists of Morrison, 71 next month, running a board of directors with 200 years of service between them. His family owns 31% of the firm, worth more than £1bn.

The succession problem has kept the City speculating. Morrison denied any plans to step down. He said: 'I am not a part-time person. I would interfere too much.'

Marie Melnyk, 44, is the other joint group managing director besides Stott, 58, both promoted in March. Morrison's son William works for the business but is too young to take over.