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Last Updated: Tuesday, 6 February 2007, 17:37 GMT
Rival suitor 'eyeing Sainsbury's'
Sainsbury store
Sainsbury's is the UK's third-biggest supermarket chain
Speculation is growing that a second private equity consortium is studying whether to launch a takeover bid for UK supermarket chain Sainsbury's.

UK firm Cinven and US group Texas Pacific are now discussing a possible joint move, according to the Times.

It follows after CVC, Kohlberg Kravis Roberts and Blackstone said on Friday that they were looking at Sainsbury's.

A spokesman for Cinven said the firm was not making any comment. Sainsbury's also declined to comment on the story.

The supermarket has already declined to comment on the interest from US trio CVC, Kohlberg Kravis Roberts and Blackstone.

Improving supermarket

Sainsbury's closed 1.8% higher on Tuesday after having jumped 14% on Friday.

Sainsbury's trolleys

The UK's third largest supermarket, Sainsbury's is close to completing a three-year turnaround plan that has gone a long way towards reviving its fortunes.

Under chief executive Justin King, Sainsbury's has cut jobs, closed underperforming stores and improved the supply and distribution chain.

The share price has been rising consistently while Mr King has been in charge, and Sainsbury's has long been viewed as a potential takeover target for private equity firms.

CVC, Kohlberg Kravis Roberts and Blackstone said on Friday that they had yet to determine whether to go forward with a formal bid.


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SEE ALSO
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02 Feb 07 |  Business
Why private equity firms matter
20 Jun 06 |  Business

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