Article: Sir Peter Davis brought back to take helm at Sainsbury's

J SAINSBURY, the struggling supermarket chain, yesterday offered its shareholders a rare beacon of hope in a seemingly endless flow of bad news by announcing the surprise appointment of the Prudential's Sir Peter Davis as chief executive.

The move, which was accompanied by a profits warning, was warmly welcomed by the City, and Sainsbury shares ended the day more than 5 per cent up at 319.5p. Analysts said the appointment made the break- up of the company more likely.

Sir Peter, who will be taking up his new position in March, said that running Sainsbury's was going to be a "wonderful challenge".

"I love the company, I have lots of friends there, I love shopping and food, and in any case ...

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