29th Jan 2016 11:32
LONDON (Alliance News) - The takeover talks between J Sainsbury PLC and Home Retail Group PLC are understood to have stalled due to a disagreement over price, the Financial Times reported.
Citing people close to the matter, the FT said the two companies have remained entrenched in their positions, with a wide gap between their respective valuations of the Home Retail business.
Sainsbury's made a bid for Home Retail, which owns Argos and Homebase, in November, which the paid said was rejected. Under UK takeover rules, it has until Tuesday to make a firm offer for the group or walk away from the talks.
Since then, Home Retail has agreed to sell the Homebase business to Australian conglomerate Wesfarmers Ltd. Sainsbury's interest was in the Argo business, however.
Sainsbury's shares were up 3.1% to 244.20 pence late Friday morning, one of the best performers in the FTSE 100, while Home Retail shares were down 9.6% to 128.79p, the worst performer in the FTSE 250.
https://next.ft.com/content/3f538e6f-9a02-3103-aa92-18dfd181c84f
By Sam Unsted; [email protected]; @SamUAtAlliance
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