Sainsbury Sold Part of Sainsbury's Bank

LONDON (AP) -- J. Sainsbury PLC, a British supermarket chain that has been the subject of takeover talk lately, said Friday it sold 5 percent of its stake in Sainsbury's Bank for 21 million pounds ($41.3 million; 31.7 million euros) to HBOS PLC.

The company will realize a profit of about 10 million pounds ($19.7 million; 15.1 million euros) from the sale, Sainsbury said in a statement. The proceeds will be used for general business purposes.

The bank will now become an equal joint venture between Sainsbury's and HBOS. Prior to the transaction HBOS held a 45 percent stake in Sainsbury's bank.

"Both parties believe that the ... joint venture structure is more appropriate and reflects the shared commitment each partner has to growing the business for the long term," Sainsbury said in a statement.

J. Sainsbury shares dipped 0.2 percent to 514.38 pence ($10.11; 7.77 euros) on the London Stock Exchange.

Last week, several private equity groups said that they were considering making a bid for Sainsbury, sending shares in Britain's third-largest supermarket group soaring.