COMPETITION watchdogs have delivered their verdict on which of four supermarket rivals should be allowed to bid for Safeway following a six-day extension.

Trade and Industry Secretary Patricia Hewitt received the recommendations after the Competition Commission requested six extra days last Tuesday to evaluate the competing offers.

The four rivals - Tesco, Asda, Sainsbury's and Wm Morrison - are waiting to hear if they can go ahead with an offer for Safeway.

But the interested parties will have to wait up to six weeks to find out who can be allowed to buy the chain and who will be ruled out on grounds it would be anti-competitive to own the 479-store portfolio.

The Department of Trade and Industry is expected to make a ruling towards the end of September.

Newspaper reports have suggested that possible bids from Tesco, Sainsbury's and Asda will be blocked by the Government.

Wm Morrison is expected to get the go-ahead to bid.

But Asda is understood to have held a last-ditch meeting with the commission to argue its case - thought to include a carve-up of Safeway.

The commission has been examining whether any of the proposed deals would create an excessively dominant supermarket group which would damage shoppers and suppliers.

The battle for Safeway began in January when Wm Morrison offered £2.9bn to buy the chain.

Since then, rival operators have joined the fray, with a bid still expected to come from retail entrepreneur Philip Green. He has been given the all-clear to bid as he does not own any other supermarkets.

City bookmakers have Mr Green as joint favourite with Wm Morrison and Asda to win Safeway's hand. They have Mr Green as joint favourite with Wm Morrison and Asda to win Safeway's hand.