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Article: It's a long way to the checkout The supermarket's share price leapt at the news of a possible private equity buyout. James Hall takes a long, hard look at what's really in the trolley
- Article from:
- The Sunday Telegraph London
- Article date:
- February 4, 2007
- Author:
CopyrightCopyright 2007 The Sunday Telegraph London. Provided by ProQuest LLC. (Hide copyright information)
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As any supermarket bargain-hunter knows, it pays to have a
shopping list and a full belly if you don't want to go over-budget at
the till. But what goes in the trolley when you have pounds 8bn to
spend?
Friday's news of a potential bid for J Sainsbury has raised fears
of the worst: an indiscriminate diet of junk food that relies on
jacking up prices, cutting investment and stripping out assets in a
mad dash for the exit before other customers realise what is
happening. With private equity backers hungry to spend their cash and
the experience of a buyout of Debenhams fresh in the memory, the City
fears Sainsbury's is in for a rough ride.
But sources close to the team led by CVC Capital ...