Qatar-backed fund Delta Two has told supermarket giant Sainsbury's that it needs to raise a further £500 million in order to make its bid, it has been reported.

The takeover panel at the retailer has told the Delta Two fund to make a firm bid by November 8, or walk away.

This would result in Delta Two being banned from making a further offer for six months.

Delta Two, which already controls around a quarter of Sainsbury’s shares, plans to appeal to the Qatar Investment Authority for the remaining funds to allow it to meet its proposed bid of £10.6 billion.

A Sainsbury’s spokesperson said: “We are working actively together with a view to securing an offer which we believe is recommendable to shareholders."

But the fund has been criticised for lacking accountability and transparency. The Peterson Institute for International Economics recently ranked Delta Two second-worst in its survey of sovereign wealth funds, according to the Times.

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