Morrisons to launch £1bn bid for Ocado?


Morrisons has been slow to develop online presence but will follow other supermakets onto the web

LAST UPDATED AT 11:45 ON Wed 24 Apr 2013

RUMOURS suggest that supermarket chain Morrisons is to launch a £1bn offer for Ocado, reports the Daily Mail.

Morrisons has been slow to develop an online presence, leaving it at a disadvantage to rivals. Shares in Morrisons moved up 3.4p to 286.6p amid the speculation that chief executive Dalton Philips and his board, which has already made a commitment to commence online grocery by January 2014, will launch a full-scale bid for Ocado, which is currently valued at £890m.

Morrisons revealed its first profit drop in six years following a disappointing performance over the Christmas period last month The company confirmed a seven per cent fall in pre-tax profits to £879m in the year to February 3, with like-for-like sales down 2.1 per cent.

Meanwhile, Asda yesterday announced plans to create 2,500 jobs in the UK through a £700m investment in its outlets and online operation.

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