Civic leaders question Tesco chairman on William Low takeover. No comfort for Dundee on loss of 300 jobs

supermarket chain.

Tesco trumped rival bidder Sainsbury last week for the Scottish chain

with an improved offer of nearly #250m.

More than 300 jobs will be lost at the Wm Low head office in Dundee if

the offer succeeds.

Offer documents have been sent to Wm Low shareholders with a

recommendation of acceptance by the company's chairman, Mr James Millar.

Tesco promised yesterday to open a Scottish regional office and Sir

Ian emphasised that Dundee would be ''right on top of the priority

list'', although a decision had yet to be taken.

But the new office -- which would house operations including buying,

marketing and training -- would employ fewer than 20 staff.

Sir Ian explained that all Low's 57 stores would remain open ''for the

foreseeable future'' under the Tesco name and that the loss of jobs from

Wm Low's head office would take place next year.

''And as far as the store staff go, one would hope that with the

takeover we would be able to push more turnover through the stores, so

their jobs are very safe.''

Sir Ian added that Tesco would give all present Scottish suppliers an

opportunity to serve the new company.

''A lot of them supply us both anyway at the present time. So I would

have thought from the producers' point of view and the manufacturers'

point of view it is a great opportunity for them.''

Sir Ian added: ''We are totally and utterly committed to Scottish

suppliers.''

Mr Tony Elmer, a senior director in Tesco, will come to Dundee as

Tesco chief executive when the takeover goes through, which is expected

to be by early next month, to take charge of the amalgamation of the two

companies.

The meeting, at Tayside House in Dundee, took place between the

company chairmen and the Dundee Partnership -- which encompasses Tayside

Regional and Dundee District Councils, Scottish Enterprise Tayside,

Dundee Chamber of Commerce, and the local trades council among others.

After the meeting, Mr George Hood, chairman of the partnership, said:

''It would have been nice to have walked away today with assurances on

various things, but given the fact that Tesco don't even own Low's at

the present time I don't think that was possible.

''I think there were certain signs of hope but unfortunately the

short-term prospects are bleak and people will lose their jobs.''

Mr Hood said that the meeting had been ''amicable'' and said that the

opening of a Tesco Scottish office with buying functions was good news

for local suppliers.

But he added: ''We made our position clear at the very start that it's

in our interest to protect the people of the city in particular and, of

course, the wider region and to assist in any way we can in avoiding job

losses.''

Councillor Hood said that with distribution depots of both Wm Low and

Tesco operating at full capacity, and the Tesco takeover resulting in

more produce going through Low's stores, there would be little

likelihood of a reduction of warehouse and distribtuion facilities.