Sainsbury's speculation sees shares surge

Fresh speculation on the future ownership of supermarket chain Sainsbury’s helped shares in the embattled company push further ahead today.

The improvement came as a number of weekend reports said former Asda boss Allan Leighton was leading a team that could make an offer within weeks.

With analysts expecting a bid of at least 300p a share, the blue-chip stock built on recent gains to lift 3% or 7.25p to 265p in morning trading.

One report said Mr Leighton had already approached the Sainsbury family – the owner of a 34% stake – about an offer, while another said private equity investors were forming a consortium to work with Mr Leighton.

Last month, attention focused on City financier George Magan after he was reported to have approached potential backers in order to secure finance.

Despite the possible bid, analysts believe the Sainsbury’s family may yet give chief executive Justin King time to work through his turnaround strategy.

He recently unveiled plans for a back-to-basics drive that will include the recruitment of 3,000 extra shopfloor staff and better stock availability.

Sainsbury’s has slipped to third in the UK supermarket pecking order behind Tesco and Asda, with like-for-like sales falling a further 1.1% in the 16 weeks to October 9.