British supermarket group Sainsbury has given Qatari-based investment fund Delta Two more time to boost the equity component of its £10.4 billion takeover bid, it was reported today.
The The Financial Timesnewspaper said Sainsbury had decided not to ask the Takeover Panel for a "put up or shut up" deadline on talks that have been going on for more than five weeks, so as to give the fund more time to see if an agreement can be reached on its 600 pence per share proposal.
The FTalso said Paul Taylor, the head of Delta Two who is expected to meet the board next week, was prepared in principle to increase the proportion of equity in the deal, to try and meet concerns about its success in a choppy debt market.
The newspaper, citing a person familiar with the situation, said the board recognised that turbulence in the credit markets had made it difficult for Delta Two to secure its financing.
Neither Sainsbury nor Delta Two could immediately be reached for comment today.
