Sainsbury reserves right not to proceed with formal bid for Home Retail

Sainsbury cautioned investors it might not go ahead with a formal bid for Home Retail Group.

However, the company simultaneously backtracked on the conditions announced on 2 February for any such bid; namely, the completion of its due-diligence of its rivals' books and a recommendation from its own Board of Directors to proceed.

“Sainsbury's wishes to clarify that these pre-conditions are waivable.”

“There can be no certainty that Sainsbury's will proceed with an offer for Home Retail Group even if the pre-conditions are satisfied or waived,” the company said in a statement issued on Thursday.

As of 14:44GMT shares in Home Retail Group were rising by 0.22% to 180.40p and those in Sainsbury by 2.14% to 267.60.