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Podcast: Beyond Currency
Episode: 24 August 2021 - City cool on Sainsbury’s takeover
Description: "The pound was particularly volatile yesterday as traders tried to decipher signals coming from the equity market regarding a potential bid from a U.S. private equity firm for the UK supermarket chain Sainsbury’s.
At times when U.S. firms are bidding for control of a UK entity, there is a mistaken belief that the buyer will need to buy a significant amount of Sterling to complete the purchase. The fact is that these deals, although valued in billions, are almost never cash transactions, and are never completed in a short time frame.
Therefore, any purchase of Sterling is un...