J Sainsbury has asked Delta Two is understood to have been given the green light from Qatar to increase the cash component of its £10.6 billion bid for J Sainsbury as it seeks the board’s backing to open the group’s books later this week.
Sources at Delta Two said (which is funded by the Qatari royal family) that they “plan to give in to the board’s demands by offering up to £500 million in additional cash”. Delta Two has given Qatar the green light to increase its bid for J Sainsbury, the third largest supermarket chain in the UK. The bid is currently at £10.6 billion as it seeks the board’s backing to open the group’s books later this week. Delta Two’s long-sought deal to acquire Britain’s third-largest supermarket chain is still far from settled, given that the bidders have yet to hold any talks with Sainsbury’s pension trustees or to gain the approval of its founding family shareholders.
The board, led by Sir Philip Hampton, the chairman, and Justin King, the chief executive, has argued that the level of debt included in the Qatari bid could make it more difficult for Sainsbury’s to compete in the event of a downturn in consumer spending. Delta Two owns a 25 per cent stake in Sainsbury’s and is its largest shareholder. (source: Times)