Qatari-backed investment fund Delta Two is refusing to change the structure of its £10.6 billion bid for J Sainsbury plc, but there concerns over the level of debt.

Sir Philip Hampton will urge Delta Two to raise the equity portion of its bid when he meets Delta Two on Wednesday, the Daily Telegraph has reported.

But a source close to Delta Two told the newspaper it was unlikely to change the funding for its 600 pence-a-share offer and denied reports the Office of Fair Trading (OFT) had warned Delta Two that any deal structure must not affect Sainsbury's competitiveness, saying the OFT had been in touch in the normal way.

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