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Sainsbury Shares Rise on Takeover Speculation

Shares in J. Sainsbury rose 2% Monday following a report that a Qatari fund might join in a possible takeover bid for Britain's third-largest supermarket group.

In early trading on the London Stock exchange, Sainsbury shares traded at 514.25 pence ($10.03).

Numis Securities commented Monday that a bid was "certainly plausible."

The Sunday Telegraph quoted Sheikh Hamad bin Jasim bin Jaber al-Thani, chief executive of the Qatar Investment Authority, as saying Sainbury's is "doing well, and this is part of what makes us interested."

He said the Delta Two fund's interest was in "a strategic investment to invest in a core business for the long term."

Earlier this month, several private equity firms said they were mulling a possible bid for Sainsbury.