(Repeats from MAY 10, no changes to text)

* 7.3 bln stg takeover by Sainsbury’s was blocked last month

* Asda to update on first-quarter trading on May 16

* Asda has reported seven straight quarters of growth

By James Davey

LONDON, May 10 (Reuters) – Asda will be scrutinised for clues on whether U.S. owner Walmart wants to line it up for sale or to compete longer term in the cut-throat British grocery market when it gives its first trading update since a planned Sainsbury’s takeover collapsed.

Britain’s competition regulator last month ruled Sainsbury’s 7.3 billion pound ($9.5 billion) takeover of rival Asda cannot proceed, closing one exit route for Walmart.

Asda, which accounts for 6 percent of Walmart’s turnover, is due to publish