FRESH speculation about the future ownership of supermarket chain Sainsbury's helped shares in the embattled company push further ahead yesterday.

The improvement came as a number of weekend reports said former Asda boss Allan Leighton was leading a team that could make an offer within weeks.

With analysts expecting a bid of at least 300p a share, the blue-chip stock built on recent gains to climb three per cent, or 7p, to 265p in morning trading.

One report said Mr Leighton had already approached the Sainsbury family - the owner of a 34 per cent stake - about an offer, while another said private equity investors were forming a consortium to work with Mr Leighton.

Last month, attention focused on city financier George Magan after he was reported to have approached potential backers to finance a bid.

Despite the possible bid, analysts believe the Sainsbury's family may yet give chief executive Justin King time to work through his turnaround strategy.

He recently announced plans for a back-to-basics drive that will include the recruitment of 3,000 shopfloor staff and better stock availability.

Hilary Cook, of Barclays Stockbrokers, said: ''Allan Leighton is an obvious candidate, given his track record. But the family may just be happy to sit it out and see if the company of their name can turn things around.''

Sainsbury's has slipped to third in the UK supermarket rankings behind Tesco and Asda, with like-for-like sales falling 1.1 per cent in the 16 weeks to October 9.

Mr Leighton quit several board posts last week, prompting the speculation about a possible takeover bid for Sainsbury's.

Shares closed up nearly four per cent, or 9p, at 267p.