Deals and IPOs

Delta May Boost Cash in Sainsbury's Offer


State-owned Qatar Investment Authority, which has offered to buy British supermarket chain J. Sainsbury's, has raised a $3 billion loan as a "warchest for investments", a banker said on Monday.

The Qatar Investment Authority's Delta Two fund has proposed a 10.6 billion pound ($21.41 billion) bid to take over Britain's third-largest supermarket operator.

The Qatar Investment Authority's nine-month loan can be extended for another six months, and is priced at 25 basis points over the London Interbank Offered Rate (LIBOR), according to the banker at one of the lenders arranging the facility.

"It's a warchest ... for undisclosed investments," said the banker, who asked not to be identified.

Britain's Sunday Times newspaper said the Qatar Investment Authority was interested in buying Nasdaq Stock Market's 31% stake in London Stock Exchange, which the U.S bourse operator put up for sale.

Qatar Investment Authority's executive director, Hussein Al-Abdullah, declined to comment on that report on Sunday.

HSBC, Gulf International Bank, Qatar National Bank and Standard Chartered arranged the loan.

Delta Two is already Sainsbury's biggest shareholder, with a 25% stake.