Milan, Nov. 10 - Privately owned Italian supermarket retailer Esselunga Friday dismissed as groundless a report in Italian business daily Finanza & Mercati which said Esselunga has received a EUR4 billion takeover bid from Wal-Mart Stores Inc.
"The report is without any foundation whatsoever," said a spokesman for Esselunga Chairman Bernardo Caprotti, head of the company's controlling family.
The report was the latest in a series of speculative news reports suggesting Esselunga might be targeted for takeover by a foreign retailer,
Esselunga is widely seen in Italy as a possible acquisition target in the country's fragmented and tightly regulated - but still lucrative - food retail sector. Caprotti, 81, is reported to be pondering the future of the business with no heirs apparent within the family.
Last month Caprotti emphatically rejected reports that he was lining up a partnership deal with U.K. retailer Tesco PLC.
"We have no contact with Tesco whatsoever," Caprotti said in a written statement sent to employees and suppliers. "Tesco and Esselunga are not compatible companies."
With Wal-Mart having pulled out of Germany and South Korea this year, industry watchers have suggested it is unlikely the world's biggest retailer by revenue will return to continental Europe any time soon.
Wal-Mart spokeswoman Beth Keck said the company doesn't comment on rumors and speculation.
The latest Esselunga comments come amid increasing rivalry between the retailer, which had revenue of EUR4.4 billion in 2005 from its 130 outlets, and unlisted Italian supermarket company Coop, one of the country's biggest grocers.
Following the reports linking Esselunga with Tesco, Coop officials interviewed in Italian papers said Coop was standing by to intervene to avert the possibility of Esselunga falling into non-Italian hands.
Esselunga's Caprotti responded with paid-for advertisements in Italian papers rejecting the reports linking it to an imminent takeover, saying its business is thriving and suggesting Coop was trying to apply pressure Esselunga to seek a Coop tieup.