Tchenguiz cans bid for Sainsbury's

Fortress Sainsbury is proving tough to penetrate. First the supermarket chain repelled a bid from private-equity group CVC in April. It then looked like Qatari-backed Delta Two had found a way through, with a 600p-a-share bid that valued Sainsbury's at £10.6bn, only for Robert Tchenguiz to step up to the ramparts armed with a bucket of hot tar.

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Last Updated: 06 Nov 2012
The arch dealmaker, who owns around 10% of the company, has announced he's not prepared to accept the offer. It's a blow for Delta Two, which had previously failed to get the backing of the Sainsbury family, owner of 18% of the company. Without Tchenguiz's support it won't be able to claim the 75% acceptances needed to de-list the chain.

Still, getting past Tchenguiz was never going to be straightforward. The man who bought and sold Odeon cinemas and now owns Somerfield is one of the City's shrewdest operators, and he certainly knows how to get the most out of a deal. Delta Two should of course have realised that - its chief exec Paul Taylor used to run Tchenguiz's Rotch Property vehicle.

Having worked closely with him, Taylor will be aware of Tchenguiz's habit of offloading the interests he picks up, and is unlikely to be deterred. But he'll also know not to expect a soft bargain.

To read a rare interview with Tchenguiz, click here.

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