I think the decision by Delta Two not to proceed with the acquisition wasn't just a case of just changing their mind at the last minute Cnidaria.
The deal had stalled for a long time as Sainsbury's were not making their financials available for due diligence for quite a while. And the recent demands of the pension groups added an extra GBP 500 million to the cost of the deal.
As we all know, the value of the Riyal against the GBP has sunk dramatically as well, and all the while the cost of credit has soared in the wake of the US subprime crisis.
The fact that the shares dropped nearly 20% to 450p (compared to the 600p that Delta was offering) gives some indication of how overvalued the deal probably was.
Maybe they could put some this money into Qatar Airways to help fund the $800m loss it reported last year.
I think the decision by Delta Two not to proceed with the acquisition wasn't just a case of just changing their mind at the last minute Cnidaria.
The deal had stalled for a long time as Sainsbury's were not making their financials available for due diligence for quite a while. And the recent demands of the pension groups added an extra GBP 500 million to the cost of the deal.
As we all know, the value of the Riyal against the GBP has sunk dramatically as well, and all the while the cost of credit has soared in the wake of the US subprime crisis.
The fact that the shares dropped nearly 20% to 450p (compared to the 600p that Delta was offering) gives some indication of how overvalued the deal probably was.
Maybe they could put some this money into Qatar Airways to help fund the $800m loss it reported last year.