The Co-op is set to unveil a £66 million offer for convenience store business Londis in a bid to scupper a deal by Budgens owner Musgrave.

Londis - owned by the shopkeepers who hold shares in the wholesaling and distribution operation - is seeking approval of a £60 million offer from Musgrave.

But that deal could be stalled by an offer from the Co-op.

It is understood Co-op chief executive Martin Beaumont will make a move before shopkeepers meet on June 22 to vote on the Musgrave bid which could net them £31,000 each.

The Co-op refused to comment on the report yesterday.

Last month Co-op bought the 64-strong Conveco chain of cornershops, bringing its tally of stores to 1,820 and giving it a foothold in the South-West.

Monday June 14, 2004