Sainsbury's major shareholder 'rejects' offer price

The Qatari fund circling supermarket Sainsbury’s was today under pressure to increase its takeover offer after reportedly failing to win the support of a major shareholder.

The Financial Times said property tycoon Robert Tchenguiz, who controls around 10% of the supermarket’s shares, was not prepared to accept Delta Two’s 600p-a-share indicative offer. He is said to believe that 610p a share or above is a more realistic price.

Without the support of Mr Tchenguiz, Delta Two would be unable to clinch the 75% acceptances it needs if it is to de-list the supermarket chain. It is already facing opposition from members of the Sainsbury’s family, who are concerned at the high levels of debt set to be used in a takeover.

Delta Two is controlled by the Qatar Investment Authority, whose chief executive is Sheikh Hamad bin Jassim bin Jaber al Thani, the prime minister of Qatar and a member of the Qatari royal family.

The investment group approached Sainsbury’s last week with an indicative 600p-a-share offer, valuing the supermarket chain at around £10.4bn (€15.5bn).

Reports earlier this week said Lord Sainsbury of Turville and Lord Sainsbury of Preston Candover had made it clear in a letter to the Qatari Prime Minister that they would not give their support to a bid that would laden the firm with debt or involve a sell-off of the group's property portfolio, estimated to be worth £8.6bn (€12.8bn).

Speculation over the group’s plans for the property assets arose after it emerged that Paul Taylor, who is founding boss of Delta Two’s investment adviser Three Delta, previously worked for Mr Tchenguiz. The tycoon has been calling for the supermarket to spin off its property to unlock value for shareholders.

But Three Delta maintains that, despite Mr Taylor having worked with the entrepreneur at Rotch Property Group , there is “no relationship whatsoever”.