Wow, what a start to a Monday morning. Delta Two, the Qatar Investment vehicle abandons its bid for Sainsburys after being unable to raise the last bit of “shrapnel” to fund its bid. Many onlookers are puzzled why they would need to raise third party funds, since Qatar isn’t short of a few dollars.
This is the second bidder to walk away this year, and the impact was dramatic with the share price dropping 19%. 600p had been the expected takeover price but now analysts are slashing their targets to 460p ish.
An unnoticed victim of this will be Robert Tchenguiz, with 8% of the stock and who had been looking at a decent paper profit had the deal gone through. Now with finance drying up for the sort of deals he does, this drop in asset value will be “an annoyance” at the very least.