Asda and Morrisons to vie for Iceland

Supermarket chain Asda is preparing to do battle with rival Wm Morrison in the £1.5 billion auction of frozen food retailer Iceland.

Britain's second-largest chain is said to have appointed City adviser Lazard to help it assemble a bid for the business, which has 750 UK stores and is being sold by the creditors to Icelandic bank Landsbanki.

According to a Sunday newspaper, Asda's US owner, Wal-Mart, is keen to grow internationally as it looks to offset flat sales in its domestic market. Wal-Mart has 8,500 stores in 15 countries and recently boosted its position in the UK with the acquisition of stores from food chain Netto.