US private equity firm Clayton Dubilier & Rice (CD&R) is considering making a second bid for Wm Morrisons Supermarkets PLC (LON:MRW).
CD&R is said to be working on a financial package with investment banks JP Morgan, Goldman Sachs (NYSE:GS) and BNP Paribas, the Times reported.
Morrisons rejected a £5.5bn bid from the firm last month and then accepted a £6.3bn offer from CD&R rival Fortress Investment.
A third US rival, Apollo Global Management (NYSE:APO), said earlier this week that it is in talks about joining a consortium with Fortress on the bid.