Shares in Sainsbury’s have jumped three per cent following rumours that a takeover bid was imminent.
Reports claimed that former Asda boss Allan Leighton had approached members of the Sainsbury family, who control one third of the shares. Analyst estimate the cost of taking on the struggling chain to be as high as £8 billion.
Meanwhile, Leighton is expected to back Justin King to retain the top job in Sainsbury’s if a takeover bid goes ahead.
King is likely to be given extra time to pursue his turnaround strategy even if a private equity consortium, fronted by Leighton, tables a bid.
The two men have a history together, both beginning their careers at Mars. King later followed Leighton to Asda.
Sainsbury’s is not commenting on the speculation but has recently bolstered its defences, appointing Morgan Stanley as a corporate adviser.
For up-to-date share prices on Sainsbury’s, keep an eye on the Financial Markets column to the left of this article, or visit the more detailed Financial Markets page.
No comments yet