Morrisons has appointed Credit Suisse as its investment banking advisor as the retailer mulls bidding for Iceland.

The frozen food specialist has been put up for sale by its majority shareholder, collapsed bank Landsbanki, as revealed by Retail Week. It has a price tag of £1.5bn.

Iceland founder Malcolm Walker, who holds a 23% stake, is thought to be preparing his own bid for the chain as he strives to retain control of the business.

Morrisons has been tipped as another contender, as it aims to build a convenience business.

Morrisons has been forced to search for an outside advisor regarding Iceland because its existing banks have a conflict of interests.