Sainsbury's (OTCQX:JSAIY+15.2%) shares trade up after reports arose that the company could be bought out by a private equity firm at a valuation of over $9.6B. Potential acquirers include New York-based companies Apollo Global Management (APO+1.2%) and Fortress Investment Group.
Sainsbury's had a market value of $9.4B at close on Friday and is Britain's second largest supermarket chain, after Tesco (OTCQX:TSCDF+2.7%).
"Sainsbury's is undeniably a good target for private equity with a considerable store estate, with the company having more than $10bn in property assets," said Markets.com analyst Neil Wilson, noting the company's reliable cash flow and defensive sector.