Schroders, which owns 20% of Home Retail Group, has told Sainsbury’s that they will accept 165p a share, valuing Argos at £1.4bn. Sainsbury’s is believed to be unwilling to pay more than 150p a share for Home Retail, which values the Argos owner at £1.2bn. The Sunday Times reports that John Walden, Home Retail Chief Executive is wanting 170p a share, which values the company at close to £1.5bn.
Sainsbury’s first bid in November for Home Retail was rejected for being too low. Last month, Mike Coupe, Chief Executive of Sainsbury’s said he will walk away from the deal if the a sensible price cannot be agreed.