Delta Two is reportedly putting the finishing touches to a £1.5 billion guarantee for Sainsbury’s pension fund.

The Qatari bidding vehicle is expected to make a final offer for the grocer by the end of the month.

The pension fund was the final point of contention for the Sainsbury’s board. Directors wanted reassurance that the pension trustees were satisfied before agreeing a formal recommendation on Delta Two’s 600p-a-share bid.

Delta Two offered to inject just£1 billion into the fund initially, as security behind the change of ownership. However, this angered chief trustee John Adshead, who then demanded£2 billion. The two sides are now understood to be nearing a£1.5 billion compromise.

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