Sainsbury's 'may escape private equity raiders'

The possible takeover interest in Alliance Boots fuelled expectations today that Sainsbury’s may avoid the clutches of private equity raiders.

Members of the consortium circling the supermarket chain include Kohlberg Kravis Roberts, which is now also involved in the approach to Boots.

The Sunday Times said KKR’s situation further complicated talks among the consortium after several days of failing to agree on various details.

If KKR decided it was unable to combine the two projects, the Sainsbury’s consortium would have to find another partner or rearrange itself by April 13 - the “put up or shut up” deadline imposed by the Takeover Panel.

Today’s report said the consortium had lined up Goldman Sachs, Royal Bank of Scotland and Barclays Capital to finance the offer, which at more than £9bn (€13bn) would be the biggest buy-out of a British public company.

The prospect of a bid has attracted stake-building in the company, with an Iranian property tycoon recently buying a 3% stake in the supermarket chain.

The consortium which also involves CVC, Blackstone and Texas Pacific, announced interest in a possible takeover at the start of February.