Store shares rise on takeover rumours

Fresh speculation that Sainsbury may face a £5 billion (€7.19bn) takeover attempt lifted shares in the ailing supermarket chain higher yesterday.

Attention settled on City financier George Magan following a media report that he has approached banks and private equity groups to secure finance for a bid.

Mr Magan was quoted as saying he has taken a preliminary look at the company, but it would be an exaggeration to claim he was planning a bid. He could not be reached for comment yesterday.

Shares surged nearly 4% in early trading on the back of the speculation, but these gains were halved as analysts played down the likelihood of a full-blown bid materialising.