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Sainsbury's bid to come down to the wire: reports
LONDON (Reuters) - A $22 billion proposed bid for British supermarket group J. Sainsbury (SBRY.L) is set to come down to the November 8 deadline set by the takeover watchdog, newspapers reported on Sunday.
Sainsbury's, which opened its books to Qatar-backed fund Delta Two in September after receiving a bid proposal of 600 pence per share, said on October 26 the fund was still seeking 500 million pounds ($1.04 billion) of extra equity for its offer.
The Sunday Times and Observer newspapers reported a split among the Qatari backers of Delta Two, which already owns a 25 percent stake in Sainsbury's, over the extra funding threatened to scupper the bid.
Delta Two was considering asking the Takeover Panel for an extension to Thursday's "put up or shut up" deadline, The Sunday Times said. A spokesman for Delta Two declined to comment.
The last-minute funding hitch after months of buyout negotiations for Sainsbury's has taken investors by surprise.
The Sunday Telegraph without citing sources said one investor, Robert Tchenguiz, a property magnate with a 10 percent Sainsbury's stake, is considering offering to invest in the bidding vehicle, Delta Two, in order to help close the deal.
Tchenguiz was not immediately reachable.
Shares in Britain's third largest supermarket group traded erratically last week on investor indecision about the chances of a deal before closing up 2 percent at 548.7 pence but still below the 600 pence proposed offer price.
