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Sainsbury's takeover plan dropped | Sainsbury's takeover plan dropped |
(about 1 hour later) | |
The private equity consortium that had been looking to buy Sainsbury's has said it is no longer considering making an offer for the UK supermarket group. | The private equity consortium that had been looking to buy Sainsbury's has said it is no longer considering making an offer for the UK supermarket group. |
CVC Capital Partners, Blackstone and TPG Capital said in a statement that "it became clear" the Sainsbury's board would not back their proposed offer. | CVC Capital Partners, Blackstone and TPG Capital said in a statement that "it became clear" the Sainsbury's board would not back their proposed offer. |
The consortium reportedly offered a bid of 582 pence per share, but reports said the Sainsbury family wanted more. | The consortium reportedly offered a bid of 582 pence per share, but reports said the Sainsbury family wanted more. |
Sainsbury's said it remained committed to its ongoing recovery plan. | Sainsbury's said it remained committed to its ongoing recovery plan. |
Shares in the supermarket ended Wednesday trading down 2.3% to 526 pence after the announcement from the consortium. | |
'Nothing of value' | 'Nothing of value' |
The Sainsbury family, which owns 18% of the business, was reported to have wanted at least 600p per share, a price the consortium was said to be not prepared to reach. | The Sainsbury family, which owns 18% of the business, was reported to have wanted at least 600p per share, a price the consortium was said to be not prepared to reach. |
The approach was at all times friendly and constructive The CVC-led consortium Check Sainsbury's shares | The approach was at all times friendly and constructive The CVC-led consortium Check Sainsbury's shares |
A source close to the bid negotiations told the BBC that "Lord Sainsbury saw no reason to hand over something of value to people who brought absolutely nothing to the table". | A source close to the bid negotiations told the BBC that "Lord Sainsbury saw no reason to hand over something of value to people who brought absolutely nothing to the table". |
Sainsbury's said in a statement following the consortium's announcement that "the key preconditions [of the bid interest] were outside the control of the board and related to the consortium's proposed financing structure". | Sainsbury's said in a statement following the consortium's announcement that "the key preconditions [of the bid interest] were outside the control of the board and related to the consortium's proposed financing structure". |
News of the end of the bid interest in the UK's third-largest food retailer comes just over two months after the CVC-led consortium first revealed it was considering making an offer. | News of the end of the bid interest in the UK's third-largest food retailer comes just over two months after the CVC-led consortium first revealed it was considering making an offer. |
'Remain great admirers' | 'Remain great admirers' |
The consortium said in a statement that it had pledged a major investment programme for Sainsbury's, including extra jobs. | The consortium said in a statement that it had pledged a major investment programme for Sainsbury's, including extra jobs. |
Lord Sainsbury and his family are said to have wanted a higher price | Lord Sainsbury and his family are said to have wanted a higher price |
"The approach was at all times friendly and constructive," it said. | "The approach was at all times friendly and constructive," it said. |
"We remain great admirers of Sainsbury's, its management and employees." | "We remain great admirers of Sainsbury's, its management and employees." |
Sainsbury's has proven an attractive takeover target as it continues with a successful three-year plan to turnaround its fortunes. | Sainsbury's has proven an attractive takeover target as it continues with a successful three-year plan to turnaround its fortunes. |
Led by chief executive Justin King, the supermarket recently reported better-than-expected sales figures for the first three months of 2007, with like-for-like sales, excluding petrol, up 5.9%. | Led by chief executive Justin King, the supermarket recently reported better-than-expected sales figures for the first three months of 2007, with like-for-like sales, excluding petrol, up 5.9%. |
Sainsbury's suffered a broker downgrade after the news that the consortium had pulled out. | |
Seymour Pierce now predicts that Sainsbury's shares could fall back as low as 420 pence. | |
It also predicted that Sainsbury's could now try and placate its shareholders by paying a special dividend or begin a share buyback programme. |
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