As widely expected in the City, Sainsbury's has been approached by a Middle Eastern investment fund about a possible £12-billion takeover.
The UK's third-largest supermarket chain confirmed the offer after a Finanical Times report said that Qatar-based investment firm Delta Two, acting on behalf of the Qatari royal family, had made a tentative offer of 610 pence a share.
Delta Two has increased its shareholding in Sainsbury's to 24 per cent with some aggressive buying in the last few months and throughout that period has been considered a potential suitor.
Sainsbury's, which has already fought off a serious bid from private equity firm CVC this year, said that the latest approach, "may or may not lead to an offer being made". Its board will make a further announcement "as appropriate", added a spokesperson.
The FT claims that Sainsbury's management and its chief executive Justin King are ready to talk to Delta Two, but the sticking point in any takeover is thought to be the Sainsbury family, which controls about 18 per cent of the firm's shares, and has consistently stated its lack of willingness to sell.
