Property entrepreneur Robert Tchenguiz has doubled his stake in UK supermarket J Sainsbury PLC to to 11 per cent from 5 per cent. The Daily Telegraph reported this today without citing sources.

The paper said he raised his stake in the supermarket chain amid mounting speculation that Delta Two, the Qatari royal investment vehicle which recently bought a 25 per cent stake in the company, could launch a bid for the company. The Telegraph said it is understood Tchenguiz is not working with Delta Two and has not held discussions with the Qataris. Spokespeople for Tchenguiz declined to comment to the paper.

The anonymous sources the Telegraph bases its story on, said Sainsbury's is "on full bid alert", although there were questions about whether Mr Tchenguiz could increase his holding much further, considering he owns a one-third stake in rival supermarket chain Somerfield. There was one suggestion that if he bought a material Sainsbury stake "in the high teens", it could raise eyebrows at the Competition Commission.

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