Former Asda boss Tony Campbell has been lined up to head the bid for Sainsbury’s chairman amid takeover speculation.

The Qatari government-backed Delta Two investment fund is recruiting Campbell, an industry veteran, to help head up its campaign to take over the retailer.

Delta Two, which is discussing a possible £10.4 billion bid for Sainsbury’s, is lining up Campbell with the view to his becoming chairman if the offer were to be accepted.

Campbell worked for Asda for two decades, helping turn the company round in the 1990s, and was chief executive until 2001.

The appointment of Campbell is seen as an attempt to deflect attacks that Delta Two’s executives have little knowledge of the sector. Delta Two is led by property expert Paul Taylor.

If the bid is successful, Campbell will be working alongside Sainsbury’s chief executive Justin King. Both worked at Asda together for more than six years in the 1990s.

Delta Two faces a series of barriers in its efforts to win control of the supermarket chain. It already operates a 25 per cent stake but needs to persuade other big shareholders, including Robert Tchenguiz, who has 10 per cent, and the Sainsbury family, which holds 18 per cent.

Reports this weekend suggested that the Qatari-backed group may need to move its terms toward £7 a share, rather than the £6 on the table, to attract family backing.

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