The planned takeover of Sainsbury's is reported to be in danger of falling apart despite a private equity group's offer to sweeten the deal.
CVC Capital Partners is now putting just over £10 billion on the table, equivalent to 582 pence a share. It is also said to be suggesting that between 25 per cent and 40 per cent of the supermarket giant could be left in the hands of existing shareholders.
The consortium is also believed to have offered a pledge to invest £3 billion into the business over five years and create 16,000 jobs by opening new stores
Analysts say Sainsbury's board may consider offers above 580 pence. But the revised offer, which values the group at £10.1 billion, looks set to be blocked by the Sainsbury family, which has indicated they will not consider an offer below 600 pence.
Lord Sainsbury of Turville and his family own an 18 per cent stake. Other shareholders are also said to be looking for offers of around 600p a share.
That would value the Britain's third-biggest supermarket group at some £10.8 billion.
The private equity group has been given a deadline of this Friday by the UK Takeover Panel to say publicly whether it is bidding for the company or not.