J Sainsbury is ready to agree to an extension of the Takeover Panel-imposed deadline of April 13 for the CVC-led private equity consortium to table a formal offer for the supermarket, the Times reports.
But chairman Philip Hampton would want to be sure that CVC et al “were not wasting our time” and that “meaningful discussions” were continuing.
The buyout consortium has encountered delays in getting a response from the trustees of the Sainsbury pension fund, who have been offered an upfront lump-sum payment towards clearing Sainsbury’s pension deficit, the report added. Reaching settlement with the trustees is seen as a key step towards making a firm bid.
The CVC team are now expected to put their terms to the Sainsbury board either later this week, or early next. A proposal would need to be filed by March 30 to give CVC time to examine Sainsbury’s books before making a formal bid on April 13, the newspaper said.