Sir Ken Morrison hit back at Tesco over its claims that consumers would benefit most if it were to enter the bidding war for Safeway.

And he has vowed to continue to fight to take over Safeway.

Morrisons began the battle for grocery chain Safeway, with Sainsbury's, Bhs boss Philip Green and US firm Wal-Mart - which owns Asda - joining the fray.

Sir Ken, boss of Bradford-based Morrisons, said: "It does not surprise me that Tesco is joining Wal-Mart and Sainsbury in pursuit of Safeway.

"It further reinforces our view that the combination of Morrisons with Safeway will create a highly effective competitor for the big three national food retailers which they are all busy attempting to thwart.

"The combination of Safeway and Morrisons will create a fourth strong national food retailer.

"A takeover of Safeway by Tesco, Sainsbury or Asda would eliminate a competitor, concentrate their purchasing power still further, and could create an anti-competitive and unhealthy market place with less choice and potentially higher prices.

"A financial buyer of Safeway is likely to lead to a break up, either now or later, leaving just three big food retailers. The alternative of maintaining Safeway on its own will not provide customers, suppliers or investors with the benefits of scale that our merger will bring. All the bidding interest in Safeway is so far hypothetical - the only offer actually on the table is from Morrisons and it is in the best interests of Safeway's customers, suppliers, employees and shareholders."

Morrisons, which is the fifth largest supermarket chain in the UK, currently has a six per cent market share.

It tabled a £2.9 billion bid for Safeway which has since dropped to £2.6 billion. Tesco announced yesterday it was considering a part-cash, part-share offer for Safeway.

Sir Terry Leahy, Tesco's chief executive, said: "We are a consumer champion, we successfully run a diverse range of store types and have a world class management team. We therefore believe the interests of the consumers would be best met if Tesco led any restructuring."