Marks and Spencer Group is interested in making a bid for Sainsburys, Britain's third biggest supermarket, but had decided to hold off for now.
M&S, Britain's largest clothing retailer, confirmed late this evening widespread speculation that it had looked at merging with Sainsbury, already the subject of private equity interest.
M&S said takeover rules meant it was ruled out of making a bid for the next six months following the statement unless it received a recommendation from the Sainsbury board or if Sainsbury received an offer from the CVC-led private equity consortium already mulling a deal or another bidder.
Its statement confirming its interest this evening followed reports chief executive Stuart Rose had told a retail conference that M&S shareholders would expect the company to consider an offer for Sainsbury given the bid interest.
Sainsbury's shares closed up 2.2% to 522-1/2 pence on the FTSE 100 index, while M&S finished 1.2% lower at 667 pence, on the FTSE100 in London.
