A private equity group’s takeover bid for UK supermarket chain Sainsbury’s has collapsed. CVC Capital Partners, The Blackstone Group, and TPG Capital said they are no longer considering making an offer.
It seems that cost was one deciding factor. Reportedly the consortium had offered to pay 8.57 euros for each Sainsbury’s share, but the Sainsbury family – which owns 18% of the company – had wanted at least 8.83 euros.
After the announcement the shares fell a further 2.3%, but they remain above the level they were at before the takeover bid was first mooted as investors think Sainsbury’s will move to unlock value from its property portfolio by doing what the private equity people wanted to do, that is selling some stores and then leasing them back.