Supermarket groups Asda and Morrisons could team up to try to derail a rival bid for Safeway.

US-owned Asda is ready to help Bradford-based Morrisons, which made a £2.9 billion bid for Safeway last January, if millionaire BHS boss Philip Green makes a counter-bid next month, The Observer newspaper claimed.

Green has got the go-ahead from the Government to bid for Safeway as he does not own any supermarkets.

But Asda, Morrisons, Tesco and Sainsbury's are waiting for Government approval to table their own offers.

It is believed that a tie-up with Asda could make it easier for Morrisons to fight Green and would give Asda a role in Safeway's future while avoiding any competition concerns.

Monday September 8, 2003