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Sainsbury's rises on bid talk

J SAINSBURY shares jumped 10 per cent yesterday on market talk that Qatar&rsquo;s sovereign wealth fund was planning a renewed offer for the supermarket chain after dropping a bid in 2007.<br /><br />Sainsbury&rsquo;s, Britain&rsquo;s third-biggest supermarket group, the 26 per cent shareholder Qatari Investment Authority (QIA) and the Sainsbury family, which own around 17 per cent, all declined to comment.<br /><br />Traders reported rumours of a possible offer at 420p a share and that former Barclays banker Roger Jenkins was broking a deal. A spokesman for Jenkins&rsquo; new corporate advisory finance firm declined to comment. Jenkins left Barclays in August to set up the new company, which has a specific focus on the Middle East. <br /><br />A Qatari fund abandoned a 600p per share bid proposal, worth &pound;10.6bn, in November 2007 as the credit crisis took hold.<br /><br />The fund bought most of its stake, which was later transferred to the QIA, at around 575p a share.<br /><br />Sainsbury&rsquo;s shares, which have risen sharply on rumours of a bid from the QIA in the past, were up 10 per cent at 342.50p, valuing the business at about &pound;6.3bn. They have gained two per cent since the start of the year, reaching a high of 346.25p on 18 May.<br />