The picture is still not clear as to who will get to own Sainsbury which is the third largest supermarket chain of UK. The private equity consortium bidding for the supermarket has fallen apart due to continued opposition from the Sainsbury family. Just CVC Capital Partners is left in the race as both Blackstone and Texas Pacific Group have withdrawn from the bid. Earlier Kohlberg Kravis Roberts too had pulled out of the race.
The exit came after the bid offer was raised from 562p to 582p and this bid did not receive the support of all the consortium members. Though it is being said that 582p is a good offer but Lord Sainsbury terms 600p as an acceptable price. The exit of bidders saw the share prices of Sainsbury tumble at the bourses and it doesn’t seem that the sole bidder would be willing to fork out 600p in view of the falling share prices. The Takeover Panel has set the Friday deadline for the bidders to either take it or leave it. The bidders have also been facing strong hostility from the trustees of group pension scheme who feel that the deficit could swell up to £3 billion. As of now the future of the takeover deal surely looks in doldrums.
Via guardian
