Sainsbury’s shares boosted by takeover rumours

| October 15, 2009 | 0 Comments

Supermarket giant, Sainsbury’s, saw its shares soar today after talks that the Qatar Investment Authority (QIA), the state-backed wealth fund, is planning to increase its stake in the chain.

In November 2007, QIA made a £10.5 billion offer for the company but withdrew the offer at the last minute blaming the credit crunch and at the time said a deal “would not be in the best interests of stakeholders”.

The fund still retains a 26% stake in the UK’s third largest supermarket.

The supermarket chain has refused to comment on the speculation but saw its shares soar by 20% following the rumours. Shares closed 31.4p higher at 342.5p. Earlier today, shares had surged to 373p.

Sainsbury’s has benefited from the economic downturn and is gaining customers from upmarket chains such as Marks and Spencer and Waitrose as cash-strapped consumers look to save money.

Bargain hunters have been opting for the supermarket’s ‘basics’ range which has resulted in strong sales at the group.

In other news today, Xstrata announced it was withdrawing its offer for rival mining group, Anglo American.

Tags: Qatar Investment Authority, Sainsbury’s,

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