The UK competition watchdog has refused to be drawn on weekend reports that it has held informal discussions with Delta Two, the Qatar-backed fund interested in buying retail giant Sainsbury’s.
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The Office of Fair Trading (OFT) stayed silent on rumours that it met with Delta Two to discuss its proposed bid for Sainsbury’s, the UK’s third-largest retailer.
The UK newspaper The Observer claimed yesterday (5 August) that the OFT has contacted Delta Two principal Paul Taylor to discuss the structure of the fund’s proposal. Delta Two has indicated that it would borrow GBP6bn to finance its proposed GBP10.6bn (US$21.5bn) bid for Sainsbury’s.
“We’re not prepared to comment,” a spokesman for the OFT said when contacted by just-food this morning. Officials representing Delta Two also refused to be drawn on the reports.
However, just-food understands that, as an impartial, administrative body, the OFT does not hold informal talks with potential bidders for companies. Should the OFT wish to examine a bid, it does so under a formal process.
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By GlobalDataFurthermore, in the case of Delta Two and Sainsbury’s, the fund has yet to table an official bid, meaning that the OFT has nothing yet to examine.
Delta Two and Sainsbury’s are due to meet later this week to discuss the fund’s proposals, which were first outlined on 19 July.
