Watchdog threat to Sainsbury deal

The £10.4bn Qatari bid to take over supermarket J Sainsbury hangs on satisfying UK competition authorities that the company will not be left overburdened with too much debt after the deal. A crucial meeting will be held this week between Sainsbury’s chairman, Sir Philip Hampton, and members of the Qatari bid vehicle Delta Two. The will attempt to thrash out an agreement to inject up to £1bn of equity into the offer to satisfy competition authorities ahead of the board recommending an approach. A referral could delay a potential takeover by as much as six months. Sunday Times Business 26/08/2007 page 2