Hedge fund Landsowne Partners, one of Sainsbury’s top 10 shareholders, has sold off a significant part of its stake in the supermarket giant for far less than the 600p-a-share price proposed by Delta Two.
The move will add to expectations that Qatari-backed fund Delta Two is to walk away from its bid in the wake of the global credit squeeze driven by stock market volatility.
Lansdowne sold around a third of its 2.3% stake at prices between 526p and 531p.
Sainsbury’s and Delta Two were recently said to have held a “constructive” meeting, discussing issues relating to the bid and the takeover price.
The Sainsbury’s family, which owns around 18% of the company, is believed to be opposed to a 600p-a-share bid.
Robert Tchenguiz, who has a 10% stake in Sainsbury’s, has yet to pledge support for Delta Two, which is run by his former Rotch colleague, Paul Taylor.
Sainsbury’s shares are currently trading at 533p – against the 600p offer price made by Qatari-backed Delta Two.
The bid would be the latest to fall into trouble following the recent stock market volatility, including recent deals put off by pubs group Mitchell & Butlers and by confectionary giant Cadbury Schweppes.
