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Sainsbury Preparing to Accept Delta Two Bid: Report

British grocer J. Sainsbury is preparing to accept a revised takeover offer from a Qatari investment fund, a newspaper reported Sunday.

The Independent reported that the Delta Two group had won the backing of Sainsbury's pension fund after talks with its trustees, and that the Sainsbury board now planned to accept a revised offer.

Sainsbury could not immediately be reached for comment.

Sainsbury, Britain's third-largest grocery chain, revealed last month that it had opened its books to Delta Two, which already holds 25% of the company. Delta Two made an indicative 10.6 billion pound ($21.7 billion) offer that valued the company at 600 pence ($12.26) a share.

Delta Two, which has been stalking Sainsbury since July, said last month that it was holding confidential talks with the trustees of the 85,000-member pension fund.

The Independent reported Sunday, without citing its sources, that Delta Two had won trustees' backing by offering 1 billion pounds ($2.04 billion) in cash and property assets to safeguard members' benefits.

Earlier this year, Sainsbury fended off a 10.1 billion pound ($20.6 billion) bid from buyout firm CVC Capital Partners.