Former Tesco boss Terry Leahy said to mull Home Retail bid

Former Tesco boss Sir Terry Leahy and US private equity firm Clayton Dubilier & Rice are reportedly mulling a possible bid for Home Retail Group to rival Sainsbury’s.

According to The Times, Leahy and Clayton Dubilier & Rice “ran the numbers” over the owner of Argos and Homebase late last year, although it is not clear if Leahy and the private equity group will enter the fray.

Shares in the FTSE 250 retailer rocketed earlier this week after Sainsbury’s announced that it had made a £1bn takeover approach in November that was rejected on the grounds that it undervalued the group.

Sainsbury’s said on Tuesday that it was still considering making another bid for Home, adding that there was no certainty this would result in a formal offer.

At 0832 GMT, Home Retail shares were down 1.4% to 130.60p.