The group J. Sainsbury plc, London, is studying a bid for the company Safeway plc. The Director of Sainsbury, Peter Davis, announced that his company would be in contact during the forthcoming week with the British competition authorities concerning its possible bid for Safeway. Consequently, it will have access to the internal financial data of the candidate for acquisition. The bid for Safeway would in total be for GBP 3,500 million and would consist of cash and shares in equal parts. Through a merger with Safeway, Sainsbury wishes to achieve cost savings of at least GBP 300 million in the first three years after the acquisition. This would be offset by an investment of GBP 500 million in order to achieve a new positioning for the Safeway brand. As Sainsbury goes on to announce, about 90 Safeway stores would have to close within the framework of this integration. According to its own estimates, turnover would increase annually by GBP 650 million. Davis expects that, should Wal-Mart also put in a bid for Safeway, Morrison would up its proposed offer which currently stands at GBP 2,900 million.