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Supermarket group Sainsbury's today declined to comment on reports that its staff are opposed to a possible takeover by an investment fund backed by the Qatari royal family.

The retailer confirmed last month that it had received a preliminary approach from Qatar-based fund Delta Two.

But the UK's largest union, Unite, has said that its 20,000 members employed by Sainsbury's are against the proposed £10.3 billion debt-heavy bid.

Apparent opposition to the offer follows the rejection of a previous attempt by private equity firms to secure a takeover of the grocery chain last year.

In regard to the latest bid, Unite said the message from its members employed at the retailer's stores and distribution depots was to "leave Sainsbury's alone".

Brian Revell, Unite national organiser for food and agriculture, said there was "every fear" Delta Two would "act just like private equity".

Reports suggest Sainsbury's board share concerns that the proposed deal could leave the supermarket heavily indebted, with bosses said to be urging Delta Two to up the proportion of equity in its offer and reduce the amount it is planning to borrow from banks in order to finance the bid.

With a large proportion of the current Delta Two offer said to be dependent on borrowed cash, analysts have expressed doubts that the proposed takeover will go ahead given the current volatility on the financial markets, which has reportedly forced banks that agreed to lend the cash to renegotiate their finance agreements.

Unite, wary of future job security should the deal be signed, have pledged to refer the takeover to the UK's Competition Commission if it goes ahead.

"By loading debt on to Sainsbury's, Delta Two will reduce the company tax paid so, in effect, the UK will be subsiding Qatar," said Mr Revell.

"How can that be justified in Britain's national interest? It surely cannot," he added.

A spokeswoman for Sainsbury's declined to comment.