Shareholders fear expensive bid for Iceland

Morrisons' bid for the Iceland frozen food chain could be met with dismay from its shareholders, analysts believe.

Morrisons is thought to have made a bid for the 77 per cent stake in the 800-store chain and is up against Asda and Farm Foods, as well as private equity firms Bain Capital and Blackstone. Iceland's 23 per cent owner, Malcolm Walker, has the right to match any bid. Morrisons is set to update the market next week with a Q3 trading statement.