In a surprise u-turn, the National Association of Pension Funds (NAPF) has retracted its calls for Sir Ken Morrison to stand down as Morrisons chairman.

Last week NAPF had urged Morrisons shareholders to vote against re-electing Sir Ken.

However, yesterday NAPF said that it would now support his re-election, following talks between RREV, the corporate governance arm of NAPF and Morrisons.

Despite the change of heart, two shareholders groups - the Pensions Investment Research Consultants and the Association of British Insurers (ABI) - are still urging Sir Ken to step down.