Reports suggest that Sainsbury's has opened its books to Qatar-based investment firm Delta Two, which is proposing a bid of £10.6 billion for the UK’s number-three supermarket chain.
Delta Two owns 25 per cent of the supermarket's shares, but is still thought to be planning an offer of around 600p a share.
Sainsbury’s has been keen to point out that no offer has been guaranteed, but chairman Sir Philip Hampton has said that if a firm offer did materialise, the bid would be recommended to shareholders.
According to BBC online, “Delta has revised its proposal to fund the deal with £4.85bn in shares and payment-in-kind notes. However, the deal would still be largely backed by debt”.
Delta has also said that if the deal happens, former Asda deputy chief executive Tony Campbell will become a non-executive chairman.
Sainsbury's would see "significant investment and further expansion" and would remain "a robust competitor... even in challenging industry conditions", Delta said.
Delta Two’s Paul Taylor is quoted as saying: "We have a high regard for the management and employees of Sainsbury's and we are supportive of their operational strategy, including plans for substantial investment in the company," he said.
"[The opening of the books] is an important next step in our progressing a possible offer."
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