Sainsbury’s supermarket shares fall as bid is dropped

Shares in supermarket group Sainsbury’s have plummeted after Qatari-backed investment fund Delta Two pulled out of plans to take over the company.

Sainsbury’s share values fell by almost 20% on Monday (5 November) following the announcement by Delta Two, which has links to the Qatari royal family.

Delta two approached the supermarket group in July with plans to buy the remaining shares it didn’t own.

But the investment fund had been unable to secure the extra £500m needed to clinch the £10.5bn deal.

In a statement to the stock exchange, the company said turmoil in the global credit markets meant it was difficult to secure the necessary debt to go ahead with the deal.

Concerns over Sainsbury’s employment pension scheme also meant it was “not in the best interests of stakeholders” to continue with the offer.

Sainsbury’s said it had an attractive future and was continuing with its strategy to grow the business.