No decision yet on Londis future

Londis​ appointed KPMG Corporate Finance to consider all its various options following a takeover bid from Ireland's Musgrave group which in turn sparked a number of rival offers from The Big Food Group, Costcutter and Nisa-Today's, among others.

But a sale of the company was just one possibility, and the consultancy firm was also asked to assess the benefits of floating the group, merging, seeking a financial rather than trade partner or simply maintaining the status quo.

Not surprisingly given the range of options up for discussion, Londis board members were unable to reach an agreement earlier this week and are expected to meet again today or tomorrow for further talks.

Reports in the UK press suggest that the board is likely to focus its discussion on a sale or merger, having ruled out the other options.

Musgrave's £40 million offer for Londis was recommended by the company's board back in November but was scuppered by the company's shareholders - for the most part independent store owners supplied by Londis - after it emerged that a handful of directors would receive the lion's share of the cash.

A more equitable proposal from the Big Food Group, owner of the Iceland and Booker chains, was closely followed by an invitation to merge with fellow symbol group Nisa-Today's, a move which would allow Londis to retain its independent, mutual status (but which offered little else by way of incentive). Costcutter, meanwhile, focused its attention on persuading Londis store owners to switch to its own banner, offering them a cash incentive to do so.

So even if a decision is reached this week to proceed with a sale or merger, any deal is unlikely to be reached in the immediate future, with any number of interested parties still in the running. Co-op and Somerfield have also been linked to the group, while many Londis store owners are hoping for a bid from Tesco and Sainsbury - both keen to expand their convenience store portfolio - as this is seen likely to be the best offer in cash terms.

Any bid from the likes of Sainsbury and Tesco could fall foul of the competition authorities, however.

Offers from BFG or Musgrave are among the most likely to succeed, as joining forces with either of these groups would allow Londis shareholders to retain their independence but still benefit from increased buying power and marketing support.