The value of shares in Sainsbury's have shot up by 18 per cent after investors admitted they were considering a takeover bid.
The group of private equity investors CVC, Kohlberg Kravis Roberts and Blackstone are in the preliminary stages of assessing a possible offer for the supermarket chain.
Sainsbury's shares rocketed up to 526.5 pence, valuing the firm at about £9.7bn as speculation spread.
Rumours have been circulating for some time that Sainsbury’s is a takeover target and gained momentum yesterday [Thursday] when news broke that the Sainsbury family trust has reduced its share holding to 13.9 per cent.
In a joint statement, CVC, Kohlberg Kravis Roberts and Blackstone, who were alos listed as possible contenders for the Birds Eye/Iglo frozen fish and frozen food group last year, said no decision has been made. "There can be no assurance that any offer for Sainsbury will be forthcoming," the US-based consortium added.
Rival UK supermarket groups have also gained in the City with Morrisons shares gaining seven per cent, and Tesco up by five per cent by mid-morning.
