The Sunday Times has speculated that private equity group Permira is considering making a £5 billion bid for Sainsbury's.
Permira, which has unsuccessfully attempted to acquire both Debenhams and WH Smith on the UK high street in the last year, is alleged to now have the troubled supermarket chain its sights.
The newspaper’s report says Permira is in talks with financial backers and would seek a management team to lead the bid.
Sainsbury's is considered vulnerable to a takeover bid by many analysts after losing more ground in the last 12 months to rivals Asda and Tesco, and with Morrisons fast becoming a rival for its position since the integration of Safeway.
TNS data revealed last week that Tesco sales had risen nine per cent year-on-year in the 12 weeks to September 12. In the same period, Sainsbury's failed to show any growth.
New chief executive Justin King will unveil the results of a review of the business on October 19, in the wake of two profit warnings from the group so far this year.
Sainsbury's had not commented on the Sunday Times report at the time of writing.
No comments yet