Sainsbury turns down CVC offer
Shares in Sainsbury, Britain’s third-biggest supermarket group, fell more than 5% on speculation that CVC would be unable to raise the bid again on its own.
By Agencies |
LONDON: Private equity firm CVC was battling to keep its bid for Britain’s J Sainsbury afloat on Tuesday, after its bidding partners pulled out and the food retailer’s founding family rejected an improved £10.1-billion offer, sources said. Shares in Sainsbury, Britain’s third-biggest supermarket group, fell more than 5% on speculation that CVC would be unable to raise the bid again on its own.
Sources said buyout groups Texas Pacific and Blackstone had left the bidding team even before CVC had proposed a new offer of 582 pence a share in cash, up 3.6% from its previous proposal. Kohlberg Kravis Roberts left the private equity consortium last week.
Sainsbury declined to comment, but a person close to its founding family — which owns about 18% of the shares — reiterated that it would oppose opening the company’s books for a bid of less than 600 pence a share. “What part of ‘no’ don’t they understand,” the person told agencies. David Sainsbury, a former chairman of the company, is the family’s biggest shareholder with a 7.75% stake.
Newspapers have said other shareholders, such as property magnate Robert Tchenguiz, agreed with the family position. “The sticking point is the family,” another source close to the situation said.
Sources said buyout groups Texas Pacific and Blackstone had left the bidding team even before CVC had proposed a new offer of 582 pence a share in cash, up 3.6% from its previous proposal. Kohlberg Kravis Roberts left the private equity consortium last week.
Sainsbury declined to comment, but a person close to its founding family — which owns about 18% of the shares — reiterated that it would oppose opening the company’s books for a bid of less than 600 pence a share. “What part of ‘no’ don’t they understand,” the person told agencies. David Sainsbury, a former chairman of the company, is the family’s biggest shareholder with a 7.75% stake.
Newspapers have said other shareholders, such as property magnate Robert Tchenguiz, agreed with the family position. “The sticking point is the family,” another source close to the situation said.
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