M&S The Latest To Court Safeway

Marks & Spencer could be the next retail giant to bid forsupermarket group Safeway, according to reports.

The company's advisers are said to have been looking at Safeway's479strong store network to see how many could be converted into itsM&S food format.

But today M&S said it could not comment on the rumours.

Analysts say the company could be better placed as a minesweeperfor Safeway stores that noone else wants to take on.

It would, they say, be most likely to take on the 121 smallerSafeway stores, with less than 15,000 sq ft floor space, that theysay would be more suitable for conversion to M&S Simply Food stores.

M&S has branches in Bristol's Broadmead and at The Mall, CribbsCauseway.

It is also rumoured that private equity firm Texas Pacific willsoon declare a formal interest in Safeway.

Safeway is already courted by six other bidders - Morrisons,Sainsbury's, Asda owners Wal-Mart, US buyout firm Kohlberg KravisRoberts, retail entrepreneur Philip Green, and most recentlydeclared, Tesco.

But only Morrisons has yet made a formal offer, which was agreedwith the Safeway board before competitors started to throw their hatsinto the ring.