Formal talks begin on Sainsbury's takeover

The Qatar-backed fund circling UK retailer Sainsbury's said today that it was holding formal talks with the supermarket's pension fund guardians as it prepares a possible £10.6bn (€15.1bn) bid for the chain.

The Delta Two investment group, which has been stalking Sainsbury's since July, has signed a confidentiality agreement to exchange information with the pension trustees and its advisers.