The Takeover Panel yesterday forced Delta Two, the Qatari investment fund, to reveal the full details of its £10.4 billion offer for J Sainsbury.

In a statement to the stock market issued yesterday afternoon after pressure from the Takeover Panel, Delta Two confirmed that it had delivered a “a comprehensive and detailed proposal” to Sainsbury’s board on Wednesday morning.

Delta Two said that it would pay 600p a share in cash and that its offer would be funded by an investment of £4.6 billion in the form of equity and subordinated payment-in-kind shares and notes, and debt finance of £6 billion provided by a banking syndicate.

The proposal also envisages investment of some £3.5 billion over five years to fund new store expansion, further store refurbishment and the development of Sainsbury’s nonfood offering – a similar amount to Sainsbury’s existing investment plan.

Paul Taylor, of Three Delta, which is the strategic investment adviser to Delta Two, said: “Our proposal is focused on growth, not retrenchment. It is backed by a shareholder with the resources and commitment to continue to improve Sainsbury’s market position in the UK with its reputation for quality and innovative food at competitive prices.”

However the statement said: “No decision has been made regarding any possible offer and accordingly there can be no certainty that any offer for Sainsbury will be made.”

Analysts said that Delta Two was offering a full price for Sainsbury’s – whose shares closed up 1½p at 592p last night – but that there was still no certainty of a deal.

Philip Dorgan, of Panmure Gordon, said: “Sainsbury’s board is likely to feel that a bid of 600p is a pretty fair offer and in normal circumstances that would win the day. But the share price is telling us that there is not much enthusiasm that the bid will be successful because there are so many imponderables – from the [Sainsbury] family to the pension fund and Robert Tchenguiz.”

Some analysts fear that the battle between Sainsbury’s three big shareholders – the founding family, with 18 per cent, Robert Tchenguiz, the property entrepreneur, with 10 per cent, and Delta Two, which already owns 25 per cent – could lead to an impasse.

Delta Two has yet to contact Sainsbury’s Pension Fund trustees, but given the level of gearing in Delta’s offer, analysts expect the trustees’ chairman, John Adshead, to demand up-front payments similar to those he sought from CVC.

The trustees demanded a £1 billion injection into the pension fund from the private equity firm when it was eyeing Sainsbury’s.

Delta Two’s statement was released as Sainsbury’s advisers sought details from the Qatari fund about its offer – including its due diligence requirements and plans for funding the company’s pension deficit – before deciding whether to open the company’s books for due dilligence.

Sir Philip Hampton, Sainsbury’s chairman, is also expected to take the views of big shareholders, including Mr Tchenguiz, on Delta Two’s offer.

The property entrepreneur, who owns 5 per cent of the supermarket’s shares and holds just over 5 per cent more in contracts for difference, is understood to remain keen on Sainsbury’s pursuing his own plan to split itself into separate operating and property companies in preference to accepting Delta Two’s offer.

One analyst said that, given the family’s and Mr Tchenguiz’s reluctance to accept an offer at 600p, Delta Two may be forced to increase its bid.

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