Somerfield 'Solid strategy'

The conditional approach from retail entrepreneurs John Lovering and Bob Mackenzie "substantially undervalues" the group, a statement said.

Chairman John von Spreckelsen added: "The board considers that the price indicated fails to reflect the value of the business.

"Somerfield has strong brands in KwikSave and Somerfield, a solid strategy for delivering value to shareholders and excellent prospects."

The statement from Somerfield said the vote against the 103p a share offer from Mr Lovering and Mr Mackenzie had been unanimous.

Mr Lovering, chairman of value retailer Peacocks, confirmed last week that he and Mr Mackenzie - former chief executive of National Car Parks - were behind the approach to Somerfield.

Investors, who have seen Somerfield shares surge from 74p to 92.75p since the bid interest became known, will now be awaiting the response of Mr Lovering and his consortium to Wednesday's rejection.