A SPLIT on the board of the Qatari Investment Authority (QIA) threatens to scupper the emirate’s £10.5 billion bid for supermarket chain J Sainsbury.

The board is under intense pressure to inject the extra £500m needed to clinch the deal within days.

Delta Two, the QIA-backed vehicle, is considering asking the Takeover Panel for a week’s extension on the bid deadline, which expires this week.

The Sainsbury board is said to be “furious” about the delay, but still quietly confident that the QIA will approve the additional equity. Their optimism is based on a letter the Qatari emir wrote to Sainsbury’s chairman Sir Philip Hampton six weeks ago. The emir assured Hampton that the deal had his personal and full support.

“The letter assured Sir Philip that Paul Taylor [of Delta Two] had the emir’s full backing and that he understood and was committed to the funding arrangements,” said an insider.

The Sainsbury share price oscillated wildly all week, falling from highs of 584p 10 days ago to lows of 544p last week.

On Friday, the shares clawed back to finish at 555p, still well below the 600p offer price.

There were fears that the price could fall as low as 450p if the deal collapses.

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