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Frozen assets: What Iceland means to potential bidders Wednesday, 25th May 2011
Interest amongst Iceland Food’s possible bidders rose yesterday as the value chain announced it was performing above the grocery market average.
Revenues for Iceland increased 5.7 percent in the twelve weeks to 16 May, outstripping the grocery market as a whole which managed just 4.8 percent growth according to figures released by Kantar Worldpanel.
As rumours surrounding the Big Four supermarkets’ interest in the retailer amount, a number of private equity companies have also been linked to the sale, although with just three percent difference in market share, competition between Morrisons and Asda is likely to be fierce.
Speaking to press this morning, Clive Black at Shore Capital stated: "Beyond Asda and Morrisons, we also believe that all of the other players will be having a good look at the Iceland estate at present. And when we say 'all' we mean 'all', from Aldi to Waitrose.” Black went on to add that “Sainsbury's and Tesco are not like to be lead players in the bidding process to our minds, although such an assertion may yet be tested, but they will be interested in specific stores in our view. Private equity also seems to be casting an eye over Iceland, although the track record of private equity in the sector is far from glorious."
Just-Food released a detailed account from industry insiders on their predictions for the 67 percent stake in Iceland which you can read here.