Asda gets BarCap backing for Iceland takeover

Tue, 27 Sep 2011
 
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Asda, the UK’s second-largest supermarket chain, has reportedly secured backing for a takeover bid of frozen food retailer Iceland .

According to reports over the weekend, Barclays Capital has agreed to support Asda in its efforts to see off competition from Morrisons, Iceland's own management team and other suitors of the 800-strong chain, although Asda has refused to comment on the speculation.

Iceland is being sold off by creditors to the collapsed Icelandic bank, Landsbanki. Around 20 potential bidders, including the major supermarket groups, smaller grocers, overseas retailers and private equity groups, are expected to receive sales information this week.

Morrisons is one of the other UK supermarkets thought to be considering a bid for the frozen food specialist, but it is Iceland’s founder and chief executive Malcolm Walker who is believed to be in pole position to take control of the business as he and several other members of the senior management team already own a 23 per cent stake in the company.

Mr Walker has revealed that he wants to take full control of Iceland and is reportedly working on raising funds to buy out Landsbanki.

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