Sainsbury’s store managers stand to clean up in Delta Two deal

Retail Week has learned that store managers who have accumulated a large tranche of shares over the years could each pocket more than £100,000 if Delta Two succeeds in acquiring the chain.

The revelation came as Sainsbury’s negotiations with Delta Two remained on a knife-edge this week. A decision about whether the grocer would open its books for due diligence had not been taken as Retail Week went to press.

A Sainsbury’s spokesman said: “It would be wrong to speculate on any potential pay-outs at this stage, when there is no formal offer on the table.” Delta Two declined to comment.

Chief executive Justin King has pushed for Sainsbury’s employees – particularly its most senior 1,000 staff – to be rewarded with shares, as part of its three-year recovery programme, Making Sainsbury’s Great Again.

Many in the City are leaning towards the view that the board will recommend the proposed 600p-a-share offer made by Delta Two in July. Shore Capital analyst Clive Black said: “We think it is more likely to happen than not.”

He added: “There is a board at Sainsbury’s that does want to engage, but clearly they have to do things in the right way in terms of corporate governance and [ensuring] that the pension trustees’ requirements are satisfied.”

However, Black warned that Sainsbury’s share price could fall by as much as 30 per pent if the deal collapses. Staples this week appointed Justin King as a non-executive.