Private-Equity Duo Size Up Sainsbury’s for Bid Battle

A BIDDING war for J Sainsbury looked on the cards today after reports that Cinven and Texas Pacific Group were considering joining the fray.

Britain’s third-biggest supermarkets chain is already awaiting a bid from a three-strong consortium of private-equity investors – CVC Capital Partners, Kohlberg Kravis Roberts and Blackstone.

Since the news broke last week, Cinven and TPG are believed to have held talks about launching a rival offer. They could ask Bain Capital to link up and pursue a deal.

Sainsbury’s is tight-lipped, although unions have already come out strongly against any deal with a private-equity house. They fear such a takeover would inevitably lead to big job losses.

The shares moved up another 21/2p to 5091/2p yesterday, making the company worth Pounds 8.75 billion.

Analysts speculate that a bidder would have to offer Pounds 10 billion before investors were tempted.

(c) 2007 Evening Standard; London (UK). Provided by ProQuest Information and Learning. All rights Reserved.