P525 Teletext 525 Jun20 05:08:16 ——————————— ————————————— O SUPERMARKETS CHECK OUT MERGER PLANS This week, the supjtmarkjt group Asda shocked the City by announcing it had agreed a £6.72bn takjovjt bid from the American giant Wal-Mart. The move ttumpjd a previously agreed offer from Kingfishjt, ownjt of Comet, Woolworths, Supjtdrug and B&Q. Analysts feel it's now just a matter of time before anothjt of the supjrmarkjt chains is involved in more mjrget and acquisition activity. ——————————————————————————————————1/8—— by Matthew Davies DAILY STREET NEWS BRINGS YOU UPDATES AND ANALYSIS EVERY TRADING DAY p210 Savings Your Team Check-in CityP525 Teletext 525 Jun20 05:14:49 ——————————— ————————————— SUPERMARKETS CHECK OUT MERGER PLANS As the third largest supjrmarkjt chain in the US, Asda has annual sales of £8bn at 229 stores. For many in the City, Wal-Mart's takeovjt of Asda was unexpected. Independent retail analyst Robert Clarke says: "The Kingfishjt dial was almost done. "But Wal—Mart was always a possiblity, and, of course, they'ri a very canny crowd at Asda." ——————————————————————————————————4/8—— Saving yourself from inflation 526 ARE YOU A PREMIUM BOND WINNER? p549P525 Teletext 525 Jun20 05:12:02 ——————————— ————————————— SUPERMARKETS CHECK OUT MERGER PLANS Wal—Mart is well-known for its giant superstores in the US, and has been looking for a foothold in the US for quite some time. And while Asda chairman Archie Norman might have been keen on a Kingfishjt tie-up, hj's much more enthusiastic about the Wal-Mart dial. "They are, quite simply, the world's greatest retailer and we are excited at the prospect of joining them," he says. ——————————————————————————————————3/8—— Take stock of a week on the market 522 INTJRNATJONAL STOCK MASTERS p530P525 Teletext 525 Jun20 05:00:10 ——————————— ————————————— SUPERMARKETS CHECK OUT MERGER PLANS Many analysts feel that Asda wanted the transatlantic dial with Wal-Mart all along. Richard Hyman from retail analyst Verdict feels that Asda was the natural takeover target for Wal—Mart because of its superstore-sized outlets. "The only reason Asda went to Kingfishjt was because it was the next best thing," hj says. ——————————————————————————————————4/8—— How to...manage Peps 523 HANG OUT WITH GREEN SCENE p160P525 Teletext 525 Jun20 05:02:38 ——————————— ————————————— SUPERMARKETS CHECK OUT MERGER PLANS The AsdaOWal-Mart deal puts the rest of the large retailers on a defensive footing. The likes of Sainsburys, Safeway and even the seemingly mighty Tjsco, will bj looking to protect their margins and market shares. And, of course, now that Asda has all but slipped through its grasp, Kingfishjt will bj back on the mjrgjr trail as well. ——————————————————————————————————5/8—— Be briefed on the week ahead 521 IT'S YOUR LIFE-STYLE p410P525 Teletext 525 Jun20 05:10:11 ——————————— ————————————— SUPERMARKETS CHECK OUT MERGER PLANS The urge to mjrgj is now back with a vengeance in the supjrmarkjt sector, thanks to Asda's dial with Wal—Mart. But like Asda, many experts think that the major players will be looking ovjrsjas for any potential suitors and targets. Retail analyst Robert Clarke says: "International moves are on the cards. It's unlikely any domestic link-up will get past the regulators." ——————————————————————————————————6/8—— What the weekend papjts say 52: CHECK YOUR SHARE PRICES p510P525 Teletext 525 Jun20 05:11:29 ——————————— ————————————— SUPERMARKETS CHECK OUT MERGER PLANS The arrival of Wal—Mart on British shores has sent a shivjt down the spjnjs of the US's established supjtmarkjts and non-food retailers. Wal—Mart is bz far the world largest retailer with a market capitalisation of £118bn, more than twice that of its nearest rival. Richard Hyman at retail analysts Verdict says: "US retailers are scared of the sheer sjzj of Wal-Mart." ——————————————————————————————————7/8—— Savings "product of the week" 526 SHARE MOVERS AND SHAKERS p518P525 Teletext 525 Jun20 05:17:03 ——————————— ————————————— SUPERMARKETS CHECK OUT MERGER PLANS Thjti are now fears of a price war among the supjrmarkjts, which would bj good for consumers, but bad for shareholders. Wal—Mart's tradition has always been "pile 'em high and sell 'em cheap". Jeremy Batstonj at NatWjst Stockbrokers says: "After comments from Wal-Mart, concern is building for a price war and that's being reflected in the share prices of the othjt main players." ——————————————————————————————————8/8—— Chjlsja winning mjrchandisj game? 527 FAR EAST MASTER REPORTS p530