SUPERMARKET PRICES COULD DROP

Good news for Hackney’s shoppers – a flurry of speculation on the takeovers at Sainsbury’s and Morrisons may mean better prices at the checkout, writes Pamela Welsh.

A private equity consortium has admitted that it may make a bid for Sainsbury’s and has until the 13th April to submit a formal bid. Analysts estimate a deal for the UK's fourth largest supermarket could be worth as much as £10bn.

The supermarket is close to completing a three-year turnaround that has gone a long way towards reviving its fortunes. Under chief executive Justin King, Sainsbury's has cut jobs, closed underperforming stores and improved the supply and distribution chain.

Bid speculation has also boosted shares in Morrison Supermarkets by over two percent. Rumours that the retailer could be a bid target has heightened interest in the food sector.