The £10.6 billion takeover of Sainsbury’s by Delta Two will not be backed by founding family shareholders unless the Qatari investment fund agrees to inject £2 billion into the deficit-hit pension fund.
Delta Two is expected to make a formal offer for the grocer this week, after it completed due diligence.
Sainsbury’s board is expected to be meet on Thursday and is believed to be willing to recommend the 600p-a-share offer to shareholders.
However, the Sainsbury’s family, which controls a share of about 18 per cent, is understood to be braced to vote against the takeover deal unless an agreement between pension fund trustees and Delta Two is reached.
The money required to fund the grocer’s pension deficit remains a stumbling block to the deal and the two camp’s calculations are believed to differ by up to£750 million.
The trustees are understood to want between£1 billion and£2 billion from Delta Two. The investment vehicle is believed to be considering the securitisation of parts of the Sainsbury’s estate to bolster the fund.
Delta Two needs 75 per cent shareholder acceptance to ensure financing from bankers. An agreement with the pension fund trustees is not a pre-condition of the deal.