7th Jan 2016 14:59
LONDON (Alliance News) - Grocer J Sainsbury PLC on Thursday disputed a story published by The Guardian suggesting the Qatar Investment Authority, one of the company's biggest shareholders, was uneasy about the bid the group has made for Home Retail Group PLC.
The Guardian said it was understood the QIA, which owns a 25% stake in Sainsbury's, does not want its shareholding in the company to be diluted by any issue of shares which would accompany a takeover bid or to pour more money in to keep its shareholding at the same level.
On Tuesday, Sainsbury's revealed it had made a takeover offer, involving cash and shares, for Home Retail, the owner of Argos and Homebase. Home Retail rejected the offer and Sainsbury's said it was considering its position. It has until February 2 to make a firm offer or walk away.
On Thursday, Sainsbury's said it understands the QIA was not the source for The Guardian story and that it has not taken any position on the proposed Home Retail takeover.
"Like any other shareholder the QIA would consider any such proposal in detail before making a decision on its position," Sainsbury's said.
Shares in Sainsbury's were down 1.3% to 237.9 pence on Thursday afternoon.
By Sam Unsted; [email protected]; @SamUAtAlliance
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