Delta Two’s proposed takeover of Sainsbury’s could be in doubt after the three banks funding the £10.6bn offer have had to go back to their credit committees to extend their financing agreements.

It is understood that Credit Suisse, Dresdner Kleinwort and ABN Amro are considering whether to extend the financing agreements for another six.

The banks agreed to underwrite the financing before the credit market turmoil set in, and one or more could now judge it too risky to re-commit itself to a deal of this size.

Delta Two may be forced to pump in more equity and cut its borrowings to keep any bid alive.

It is thought the three banks want to extend the financing agreements, but higher interest payments may make any deal more expensive. Sources have said the deal was not deemed as risky as some private equity transactions because a large portion of the debt would be secured against Sainsbury’s property portfolio.

Even property-related deals have been delayed because of the market turbulence and investors’ unwillingness to back any leveraged deal.