Newspaper article The Evening Standard (London, England)

Qatari'war Chest'has Sainsbury and the LSE on High Bid Alert; against a Single Buyer: Furse

Newspaper article The Evening Standard (London, England)

Qatari'war Chest'has Sainsbury and the LSE on High Bid Alert; against a Single Buyer: Furse

Article excerpt

Byline: NICK GOODWAY

SAINSBURY and the London Stock Exchange were both on heightened bidalert today after the state-owned Qatar Investment Authority raised a $3billion ([pounds sterling]1.5 billion) loan.

Sainsbury shares rose 612p to 56012p while the LSE spurred 7p higher to 1373p.

A banker close to the Qataris said the loan is "a war chest for investments".

News of the debt-raising despite difficulties in the credit markets came amidhopes in the Qatar camp of a breakthrough in bid talks with Sainsbury.

It also needs to decide by Friday whether to bid for Nasdaq's 31% stake in theLSE.

The Qataris have proposed a [pounds sterling]10.6 billion, 600p-a-share takeover of Sainsburythrough their Delta Two investment arm but the Sainsbury family has beenalarmed at the debt with which Delta proposed to burden the group. However, ithas emerged that Delta chief Paul Taylor met the Sainsbury's board last weekand eased concerns by offering to inject an extra [pounds sterling]500 million of equity into abid. …

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