U.K. retailer gets surprise offer

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Thursday, Jan. 9, 2003 | 10:10 a.m.

LONDON -- British food retailer William Morrison Supermarkets PLC announced a surprise offer today of $4.6 billion in stock Thursday for its larger rival, Safeway PLC.

Safeway, the country's fourth-biggest supermarket chain, has long been the subject of takeover speculation, but Morrisons, whose conservative management has focused on organic growth, wasn't seen as a likely bidder. Morrisons ranks fifth in British food retailing.

The combined business would have 598 stores and a market share of 16.1 percent -- the same as Britain's third-biggest food chain, Wal-Mart-owned ASDA. Safeway is not related to the U.S. grocery company of the same name.