Delta Two has informed UK supermarket Sainsbury's that it is seeking increased funding of approximately £500 million of additional equity in respect of the proposed acquisition of Sainsbury's. The original offer price was 600p per share in cash.
Delta Two has entered into discussions with the Qatar Investment Authority to secure the extra money. However, Sainsbury's, whose founding family controls 18%, has said "there can be no certainty that such funding will be forthcoming and, therefore, no certainty that an offer will be made."
In order to bring the situation to a close as soon as possible, both parties have agreed a deadline of 5pm on 8 November by which time Delta Two must make a formal announcement regarding a possible bid or declare that it does not intend to make an offer.