1st Feb 2016 06:46
LONDON (Alliance News) - J Sainsbury PLC is facing pressure to increase its bid for Home Retail Group PLC in order to secure an agreement to buy the Argos and Homebase owner, the Financial Times reported.
According to the newspaper, people close to the matter said Sainsbury's met with Schroders PLC and Toscafund, the two biggest shareholders in Home Retail, last week, with the pair indicating Sainsbury's would have to pay at least 160 pence per share, or preferably close to 165p, to get their support.
A 160p per share deal would value Home Retail at around GBP1.3 billion. The stock closed on Friday at 136.70p.
The pair are still discussing a deal and may request an extension to the deadline for Sainsbury's to make a firm offer. That deadline is on Tuesday.
https://next.ft.com/content/65c33632-c837-11e5-a8ef-ea66e967dd44
By Sam Unsted; [email protected]; @SamUAtAlliance
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