The private equity consortium at centre of the takeover speculation surrounding UK supermarket group Sainsbury is facing an ultimatum to make a formal bid in the next few days or back off. The UK's Observer newspaper reported on Sunday that the Takeover Panel is to call the consortium, consisting of Kohlberg Kravis Roberts, Blackstone and Texas Pacific Group, to end the uncertainty over its intentions. Sainsbury's share price has risen sharply in the last month since news of a possible bid surfaced. But there has been little movement towards an actual offer.
The private equity consortium at centre of the takeover speculation surrounding UK supermarket group Sainsbury is facing an ultimatum to make a formal bid in the next few days or back off. The UK's Observer newspaper reported on Sunday that the Takeover Panel is to call the consortium, consisting of Kohlberg Kravis Roberts, Blackstone and Texas Pacific Group, to end the uncertainty over its intentions. Sainsbury's share price has risen sharply in the last month since news of a possible bid surfaced. But there has been little movement towards an actual offer.
Last week, Marks & Spencer ruled out launching a bid for Britain's third largest supermarket chain Sainsbury for the time being. However, M&S reserved its right to reconsider its position if another bidder emerges for Sainsbury or if Sainsbury recommended a bid from M&S. The statement by M&S followed comments by ceo Stuart Rose who described a possible link-up between the two groups as interesting.
The jewel in Sainsbury's crown is its freehold property with an estimated value of £7.5 bn, not far removed from the company's market capitalisation of £8.8 bn. This has given rise to speculation that KKR was planning a repeat of the strategy it used in the Netherlands in 2004 when it paid EUR 1.6 bn for Dutch retailer Vendex before selling its properties in a sale and leaseback deal for EUR 1.5bn.
