Sunday newspaper round-up: Smiths Group, Virgin Galactic, Sainsbury

One of Britain's biggest engineering firms is on the cusp of a major break-up after receiving a £2billion takeover approach for its medical division from a US private equity predator. City sources said FTSE 100-listed engineering giant Smiths Group has been holding talks with Boston-based TA Associates. Bankers from Goldman Sachs are said to be working on the deal. - Financial Mail on Sunday

British supermarkets are the most undervalued in the world, the former boss of Sainsbury’s has said, after a takeover race for Morrisons and the sale of Asda to the billionaire Issa brothers. Justin King said international buyers have scented an opportunity in the UK grocery market as it races to capitalise on post-Covid demand for internet shopping. Mr King ran Sainsbury’s for almost a decade before stepping down in 2014, and is now a non-executive director at Marks & Spencer. - Sunday Telegraph

The British entrepreneur Richard Branson has successfully flown to the edge of space and back in his Virgin Galactic passenger rocket plane, days ahead of a rival launch by Amazon founder Jeff Bezos, as the billionaires compete to kick off a new era of space tourism. - Guardian

Marks & Spencer has hinted it may reintroduce its pandemic-hit dividend sooner than expected after chairman Archie Norman said the food and clothing giant was 'very confident about the year ahead'. The firm's chief financial officer, Eoin Tonge, said it had initially hoped to reinstate the dividend within three years. But that could happen 'sooner' if a 'stronger' performance fulfilled the board's ambitions, suggesting it may be as soon as next financial year. - Financial Mail on Sunday

Households face the prospect of two rises in car insurance costs over the next six months as more drivers return to the roads. "I see premiums rising over the next few months as we go out of this period of lockdown. There is the potential that consumers are going to increase their mileage because of that, and that is a very big risk factor," said Ryan Fulthorpe of price comparison site GoCompare. - Guardian

Atlas Mara, the banking group established by former Barclays boss Bob Diamond, faces a multimillion-pound damages claim over the disputed purchase of a Zambian bank. Zambian tycoon Rajan Mahtani claims that Atlas Mara, which is listed on the London Stock Exchange, breached the terms of a share sale and purchase agreement that was struck when it took control of his Finance Bank Zambia in 2015. - Sunday Times

Three Morrisons directors stand to rake in up to £35 million from the proposed sale of the business, raising questions over whether bumper executive share awards are contributing to the wave of private equity buyouts sweeping the UK. The Morrisons board this month recommended a £2.54-per-share offer from a consortium led by Fortress Investments, valuing the Bradford-based supermarket chain at £6.3 billion. - Sunday Times

Food makers and pub chains have complained that hauliers are raising prices and prioritising bigger customers as a shortage of drivers reaches crisis point. Logistics firm Fowler Welch is understood to have told customers that prices would rise by 5 per cent, while Eddie Stobart has prioritised larger account holders. A shortage of HGV drivers has been blamed on EU nationals returning home because of Covid and Brexit, and a pandemic-induced delay to the qualification process. - Sunday Times

Homeowners could save thousands of pounds on their mortgage as a price war between lenders drives rates to record lows. HSBC and TSB have both just unveiled two-year fixed rate deals with a rock-bottom interest rate of 0.94 per cent. And a number of lenders have launched eye-catching deals under one per cent in recent weeks to tempt borrowers. The property market has been flying this year, thanks to a post-pandemic return of confidence and the stamp duty holiday. - Financial Mail on Sunday

An American private equity suitor for supermarket Morrisons is embroiled in a long-running legal battle over allegations that it 'asset stripped' a company and left it 'on the verge of bankruptcy'. Clayton Dubilier & Rice is accused of 'siphoning' around $575million (£415million) from US water treatment company Culligan in dividends, payments and fees. - Financial Mail on Sunday

The controversial founder of Telit Communications is threatening to scupper a £300million private equity-led takeover of the AIM-listed internet chip business he founded 21 years ago. Oozi Cats, who hit the headlines in 2017 amid allegations that led to his departure as chief executive of Telit, told The Mail on Sunday that he will not vote for private equity firm Dbay's £2.20-a-share offer. Shareholders are expected to vote next week. - Financial Mail on Sunday