Qatari-backed investment fund Delta Two this afternoon confirmed that it submitted a £10.6bn takeover proposal to the board of supermarket giant Sainsbury’s yesterday.

In a Stock Exchange announcement it said that it had made a proposal to buy the ordinary share capital of the retailer for 600p a share, in addition to the dividend of 7.35p a share to be received by shareholders tomorrow.

Delta, which has a 25% stake in Sainsbury’s, said that any offer would be funded by £4.6n of equity and £6bn of debt. Delta also said that it would invest a further £3.5bn over the next five years to fund a store expansion and refurbishment programme, as well as improving Sainsbury’s non-food offering.

Paul Taylor, Principal of Three Delta, which advises Delta Two, said: 'Our proposal is focused on growth, not retrenchment. It is backed by a shareholder with the resources and commitment to continue to improve Sainsbury's market position in the UK with its reputation for quality and innovative food at competitive prices.'

It is thought that Delta has sought to win over the Sainsbury family, which owns an 18% stake in the supermarket, and gain their support for the bid.

Delta is also thought to be trying to get property entrepreneur Robert Tchenguiz to back its bid. Tchenguiz is thought to have a stake of up to 10% in Sainsbury’s, and earlier this year had a proposal rejected by the board to spin off the supermarket’s property portfolio into a separate company.