Sainsbury’s CEO Mike Coupe

The major story this morning is The Times’ scoop that Sainsbury’s boss Mike Coupe has been sentenced to two years in jail by an Egyptian court.

The Times (£) writes of the “extraordinary tale” that dates back 14 years to when Sainsbury’s left Egypt nursing losses of more than £100m. Coupe was found guilty of a criminal breach of trust in his absence in September, but has was forced to fly to Giza on Sunday to appeal the conviction. The allegations stem from a claim by former Sainsbury’s partner in the country Amr el-Nasharty that last July Coupe and his lawyers attempted to seize cheques that relate to Edge’s bankruptcy and are held in a trust in Giza.

The paper says his conviction carries the risk that if he travels through Egypt, or any country with which it has an extradition treaty, he could be arrested and imprisoned.

The Times has an additional story looking at how “Sainsbury’s Egyptian adventure turned into a pyramid of trouble”, noting that “few forays into Egypt have been as shortlived or have ended as disastrously as that of J Sainsbury”. (The Times £)

The FT reports that Walmart is accelerating its China expansion at a time when its rivals are starting to pull back after pledging to open 115 stores over the next three years. (The Financial Times £)

The Telegraph’s Questor column looks at Reckitt Benckiser’s shares, noting that despite its strong start to the year the “shares are looking expensive”. It explains that Reckitt is trading on 25 times forecast earnings, a 35% premium to the past 15 years. “Reckitt is one of those companies whose shares we would be happy to hold on to forever, but we wouldn’t recommend buying at these prices.” (The Telegraph)

Also in The Telegraph, Allister Heath backs Whitbread to fight investor pressure to sell off Costa following CEO Andy Harrison’s exit yesterday. He argues that the “next boss should also be allowed to proceed with ambitious growth plans, even if they appear costly to some” after the firm “had the guts to take on Starbucks and win”. (The Telegraph)

Drinks can maker Rexam sees 5% sales rise thanks to bubbling demand for energy drinks and growth in the UK, Russia, Germany and Italy. The drinks can maker is in the process of being bought for £4.4bn by US rival Ball. (The Daily Mail)