Sainsbury's is thought to be seeking a "put up or shut up" order if it does not receive a firm offer from Delta Two, its Qatari-backed suitor, this week.
The UK’s number-three supermarket chain is reportedly growing impatient at Delta Two’s inability to finalise financing arrangements, the Sunday Telegraph said.
Insiders have said, however, that Delta Two could launch its £10.6 billion bid for the supermarket group within the next few days.
The firms have been locked in discussions over the last few months to try to thrash out an agreement over the price and structure of the deal.
According to the Press Association, members of the Sainsbury family are understood to have been unhappy about the levels of debt involved, with Delta Two said to have been working to up the equity portion.
“Delta Two has previously said it would part-finance the bid with around £6 billion of debt, but this has come under increasing scrutiny in recent weeks amid the turmoil in credit markets,” said a PA release.
“Banks are demanding tougher terms as a result of the recent turbulence, and are said to be particularly nervous about whether chief executive Justin king would remain with the company if the deal goes ahead.
“If a "put up or shut up" deadline is issued by the City regulator, Delta Two would have to launch its bid within a set period, or would be prevented from making another approach for 12 months. If the groups do reach an agreement on terms and price - expected to be around 600p a share - Sainsbury's could open its books for due diligence as early as this week.”
