Sainsbury's driven by shares speculation

Shares in Sainsbury’s soared today after the sale of a family-owned stake fuelled speculation that the retailer could be a takeover target.

The stock was 6% higher, even though the sale of 40 million shares by Lord Sainsbury of Turville was carried out through a blind trust.

The move means Lord Sainsbury is no longer the company’s largest shareholder, following the reduction of his stake on Wednesday to 13.9% from 16%.

The former science minister is still governed by ministerial code and would have been unaware of the disposal by a trustee of the Sainsbury family trust. However, he is due to regain control of the shares later this month.