Shares at Sainsbury's have hit an eight-year high after a private equity firm announced it was considering a takeover bid for the supermarket.
On early morning trading shares at the company were up 18 per cent to 526.5p, with CVC, Kohlberg Kravis Roberts and Blackstone later confirming that it was in the "preliminary stages of assessing" an approach.
At current levels, the firm would have to pay up to £10 billion for Sainsbury's, Britain's third largest supermarket group.
"No decision has been made regarding the relative merits of an offer and as a consequence there can be no assurance that any offer for Sainsbury's will be forthcoming. A further announcement may be made, if and when appropriate," a statement from CVC, KKR and Blackstone said this morning.
Yesterday the Sainsbury family sold 40 million shares, leaving it with a 14 per cent stake and making any possible takeover a more realistic proposition.
Digg 
Delicious 
Reddit 
StumbleUpon 
Google 
Technorati 
Netvouz