Blog: Dean BestOFT keeping its powder dry on Sainsbury's

Dean Best | 6 August 2007

just-food was surprised to read reports this weekend that the Office of Fair Trading had held informal talks with Delta Two, the investment fund looking to buy UK retailer Sainsbury’s.

The OFT was said to have approached Delta Two and discussed the fund’s proposed bid for Sainsbury’s.

Delta Two, an investment vehicle backed by the Qatar government, has indicated that it would bid GBP10.6bn (US$21.5bn) for Sainsbury’s and borrow some GBP6bn to fund the takeover.

There have been concerns over the amount of cash Delta Two would look to borrow to finance the deal, not least from UK trade unions worried over the level of debt that could be placed on the business.

However, to suggest that the OFT would act on those concerns at this point in proceedings is misguided. First, there has been no official bid from Delta Two for Sainsbury’s and secondly, should the OFT wish to hold talks with the fund, it would do so under standard official procedures as an impartial, administrative body.


BLOG

Fyffes to face Ethical Trading Initiative disciplinary committee

A year after union officials alleged Fyffes abused workers on plantations in Central America - and called on the produce giant to be kicked out of the Ethical Trading Initiative forum - the company is...

BLOG

Could 3G Capital's next move be in foodservice?

Much of the chatter about where 3G Capital could look next has centred on packaged food - but might the private-equity fund be about to extend its foodservice empire?...

BLOG

Safety allegations could tarnish Mead Johnson's reputation

Headlines that Mead Johnson's board has backed Reckitt Benckiser's takeover bid will no doubt overshadow the other news on the group this week – that it is facing a US lawsuit from a “whistle blower” ...

BLOG

The list of UK's top five grocers has a new member

Kantar Worldpanel issued its monthly supermarket share data in the UK this morning - and the numbers showed a change in the identity of the country's top five food retailers....

just-food homepage



Forgot your password?