Sainsbury’s posts a sales rise ahead of Argos offer deadline

Sainsbury’s, Britain’s second biggest supermarket, reported its first quarterly sales increase in more than two years, three days before a deadline for it to raise its offer for Home Retail, which owns Argos.

Sainsbury’s is embroiled in a battle for Argos with South African company Steinhoff International, and both suitors have until Friday evening to make a firm offer or walk away.

The UK supermarket made a cash and shares proposal for Home Retail in February worth £1.3 billion (€1.67bn) but Steinhoff trumped that offer with a 175 pence-per-share proposal later in the month, valuing it at £1.44bn.