SUPERMARKET target Safeway's six-way takeover tussle took another twist when it dropped its recommendation of an original offer from Morrisons.

The UK's fourth largest supermarket chain instead told shareholders to "await developments". Despite the move, Safeway said it was still supportive of the Morrisons offer, which was tabled two weeks ago and valued the chain at £2.9bn.

Since then, there has been interest from Sainsbury's, Asda owner Wal-Mart, Tesco, Bhs billionaire Philip Green and US buyout specialists Kohlberg Kravis Roberts.

Reports also suggested that Marks & Spencer had run the rule over Safeway, although M&S declined to comment on the speculation.

One factor to be considered by Safeway and its advisors will be which of the proposed bids falls foul of regulatory concerns. In a statement yesterday it said that it "remained confident" that a merger with Morrisons would avoid reference to the Competition Commission.