J Sainsbury could be in the hands of its Qatari suitors by Christmas after the supermarket’s board yesterday confirmed it had opened its books to Delta Two, the state-backed fund which is planning a £10.6 billion takeover bid.

However, investors appeared to retain some scepticism that a formal bid would emerge with shares rising by just 2 per cent to 565p, below the 600p-a-share bid price, yesterday.

The chief concern is whether Delta can secure agreement with Sainsbury’s pension fund trustees, who are thought to want between £2 billion and £3 billion in cash up front to underpin retirement benefits for the scheme’s 85,000 members.

Talks with the trustees are expected to begin early next week although informal discussions are thought to have already begun.

Commentators said Delta Two had a stronger position to cut a deal with the trustees having increased the equity in its offer to £4.9 billion, and made clear it planned to retain ownership of Sainsbury’s valuable property portfolio. In a statement yesterday, Delta said it would work “constructively” with the trustees to reach agreement.

The good news for Delta Two is that the Sainsbury family, who retain an 18 per cent share in the company, appear to be comfortable with the 600p-a-share bid price, particularly as the fund has confirmed plans to include a 3p-a-share dividend in respect of the period ending October 6.

Delta Two is expected to take about three weeks to complete due diligence and an offer is likely to be put to be put to shareholders by mid October. The offer would take 60 days to complete, so that if everything runs smoothly it could be completed by mid-December.

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