This morning’s Daily Mail has re-opened the speculation that ex-Asda chief Archie Norman is preparing a bid for Sainsbury’s.
The paper’s City pages say Norman, who runs a venture capital fund called Aurigo Management Partners with former Energis colleague Bradley Palmer, has backers for a bid.
“Backed by four major institutional investors, he certainly has the ammunition to buy Lord Sainsbury's shareholding and, if not bid for the rest himself, put it into play and end up making a useful turn on the investment. A bid for Sainsbury would have to be pitched well in excess of £5 a share,” writes Geoff Green.
The story has been refloated in the wake of Lord Sainsbury’s departure from government circles. He recently resigned as the Labour government's science minister, and The Daily Mail said: “the story has always been that you should not fill your trolley with stock until Lord David Sainsbury, or should I say Lord Sainsbury of Turville, resigned as the Labour government's science minister.
“Whilst in office, his or the family's 16 per cent stake has been locked up in a blind trust to avoid any conflict of interest, providing a huge stumbling block for any potential bidders. But as soon as he said cheerio to Tony Blair & Co, the boys in dark glasses say everything could be up for grabs.”
Lord Sainsbury is reported in-house as pledging not to sell a share for at least three months, but rumours persist that he has other plans. Green suggests that a buyer - ie. Norman - has been found.
