LONDON (AFX) - Investors may have to bide their time a little longer awaiting news of a possible J Sainsbury PLC takeover bid, as there can be no guarantee that an offer will be announced this week, sources told AFX News.
On Sunday, those sources said a bid was still being evaluated.
The Sunday Times meanwhile reported that the bid for the supermarket chain by a private equity consortium could be for 11 bln stg. The newspaper said it understood that the consortium -- comprising Kohlberg Kravis Roberts, Blackstone, CVC and Texas Pacific -- hoped to go to the Sainsbury board with an indicative takeover proposal in the next few days, although it added that City sources cautioned the timetable could easily slip.
The newspaper said that if an indicative offer does not emerge soon, the Sainsbury board, led by Sir Philip Hampton, will ask the Takeover Panel to issue a put up or shut up directive to the consortium, which would set in motion a strict timetable under which an offer must emerge or they walk away.
A source close to the private equity consortium said it was proving difficult to get all the group members to agree on a value for the business, which was slowing down progress, the Sunday Times added.
The source added that they were still disagreeing over fairly esoteric issues. But with pressure mounting to make a public statement of intent sooner rather than later, the consortium hopes to reach agreement soon. It is thought it is hoping to come to the board with an offer pitched at about 550 pence a share, although some believe the opening move could come in at a lower level, the article added.
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