Tuesday, January 5, 2016

Home Retail Group offer is a headache Sainsbury's doesn't need

The supermarket’s £1bn bid for the Argos and Homebase owner came as a surprise. There’s a reason for that

Surely Sainsbury’s has enough problems on its plate in supermarket-land without volunteering to fight Argos’s battle with Amazon. Chief executive Mike Coupe disagrees, thus a bid approach to Argos-parent Home Retail Group that nobody saw coming.

The element of surprise cuts both ways. On one hand, Sainsbury’s forces any rival would-be bidder for Home Retail – private equity interest has been rumoured – to show its hand. On the other, Coupe and co have only a month before the expiry of the put-up-or-shut-up bid deadline to convince their own shareholders that the adventure is worth undertaking.

Related: Sainsbury's £1bn bid for Home Retail Group rejected

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from Mergers and acquisitions | The Guardian http://ift.tt/1O3KkEw

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