Hodkinson confirms Homebase bid option

Charterhouse Development Capital yesterday confirmed that it is working with former B&Q chief executive Jim Hodkinson on a possible bid for Homebase, Sainsbury's DIY business.

Charterhouse Development Capital yesterday confirmed that it is working with former B&Q chief executive Jim Hodkinson on a possible bid for Homebase, Sainsbury's DIY business.

"We can confirm that we are working with Jim Hodkinson and are looking at Homebase," the venture capital firm said.

Mr Hodkinson, who left the New Look fashion chain in May after an incident at an industry dinner, said Sainsbury's had distributed information packs to interested parties "about a week ago". Speaking from his holiday home in the south of France, Mr Hodkinson added: "Opportunities come and go and when this one came up it seemed sensible for us to have a look at it."

Sainsbury's confirmed on Wednesday that it was examining options for Homebase, including disposal, joint venture or an alliance. Sainsbury's shares closed 5p higher at 354p.