Food for thought on a Sainsbury buyout

By Camilla Palladino

By Camilla Palladino

www.breakingviews.com

Investors in ailing UK supermarket chain

J Sainsbury seem to be hoping a private-equity bidder will ride to their rescue if new CEO Justin King fails to turn the business around as he has promised. But could such a bidder make the numbers stack up?

It’s possible but it would be a big stretch. The major difficulty with Sainsbury is its size. The group’s market capitalization is £4.6 billion, and any bidder would also have to assume £1.8

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