Shares in Sainsbury's rose 6p to finish on 577.5p yesterday as takeover speculation continued to circle the supermarket chain.

Talk in the City was that property tycoon Robert Tchenguiz had sold his 10% stake in Sainsbury's at 610p a share and had given Qatari-based property investment group Delta Two, which has a 25% stake in the retailer, first refusal on the shares, according to reports in the Daily Mail.

The speculation comes ahead of Sainsbury's annual general meeting, which is due to be held in London later this morning.