Harveys and Bensons for Beds owner Steinhoff has approached Home Retail Group with a possible cash offer that threatens to scupper Sainsbury’s takeover bid for the Argos owner.

The integrated retail giant’s 175p a share approach values Home Retail at £1.4bn, substantially more than the 161.3p cash-and-share offer announced by the supermarket chain earlier this month.

Steinhoff, which also has its own wholly-owned UK upholstery and bed manufacturing operations, is interested in buying Argos, and not Homebase, Home Retail Group’s other retail business.

It said it was supportive of the already-lined-up disposal of the DIY and home improvement retailer Homebase to Australian group Wesfarmers.

Speaking Friday evening, Steinhoff UK Retail CEO Sean Summers told The Furnishing Report the potential deal was still only “at the initial stages.”

“The statement deals with our position as Steinhoff and what we are permitted to disclose at this stage. It is fairly comprehensive,” he said.

Home Retail Group said: “The Board is reviewing the Steinhoff Proposal with its advisers and will make a further announcement in due course.”

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