CVC, the private equity firm heading up a bid for retailer Sainsbury’s, has reportedly called in the help of Goldman Sachs’ private equity division in an attempt to save its fast-collapsing proposal.

But the support may fail to save the bid, despite CVC raising its offer from 562p to 582p a share over the weekend.

The company saw co-bidders Texas Pacific and Blackstone leave its private equity consortium yesterday, following the departure of Kohlberg Kravis Roberts last week. The Sainsbury family also reiterated its opposition to the board, insisting on an offer of no less than 600p a share.

The board spent most of yesterday in talks with shareholders, especially family members who between them own around 18 percent of the supermarket chain. Some board members reportedly feel 582p a share is generous enough to recommend it to shareholders.

But CVC’s offer is conditional not only on the backing of the founding family, but also on the support of 75 per cent of the shareholders.

Such conditions made it impossible to allow CVC access to its books, the board believes.

Topics