Somerfield’s board has rejected the proposal relating to a possible offer for the supermarket group from John Lovering and Bob Mackenzie saying the proposal substantially undervalued Somerfield.

The value indicated in the proposal was £510m or 103p per share, and it was conditional on a number of matters, including the unanimous recommendation of the proposed offer by the Somerfield board.

At a specially convened board meeting chairman of Somerfield John von Spreckelsen said: "The board considers that the price indicated fails to reflect the value of the business. Somerfield has strong brands in Kwik Save and Somerfield, a solid strategy for delivering value to shareholders and excellent prospects."