Is this dream team the one for Sainsbury?

THE question is no longer if but when. A takeover bid for the £5bn Sainsbury supermarket chain now looks a certainty. And though it may have been coincidence, the dream team of Allan Leighton and Archie Norman to work on the assault now appears a possibility.

Leighton started dropping nonexecutive directorships only two days after his friend and former Asda colleague Archie Norman announced he'd be quitting politics.

Norman is still linked to investment bank Lazard, but with sufficient incentive, that tie could probably be broken. Certainly Leighton was in touch to explore the possibilities of bringing Norman on board the second he discovered he was leaving the Commons.

And though neither has direct experience of the Sainsbury business, there are plenty of friends and former Asda colleagues already in situ to help, notably Justin King (now Sainsbury's chief executive), Mike Coupe (trading director) and Gwyn Burr (customer services director).

Though the Sainsbury family, with about 35% of the shares, has so far backed its incumbent management team, it has said it will review its investment next spring in a move that suggests support is not as rock solid as it has been.

And it appears that Leighton and his backers - who may include the fabulously wealthy Weston clan of Selfridges, British Sugar and Fortnum & Mason fame - believe that the family should be kept on board.

Conveniently, of course, that would lower the price the bidders would have to pay as the family stake could simply be rolled into a new vehicle.

And it seems at present that family members are more concerned about keeping the name over the door than whether they might be asked to forgo dividends while Leighton et al attempt to restore the High Street behemoth to a semblance of its former glory.

Interestingly, King is believed to have taken some serious schmoozing before he finally accepted the potentially poisoned chalice that is the number one job at Sainsbury.

Then he disarmingly confided to friends that he was not absolutely sure anything really could be done to stop the rot.

Given the way that rivals Tesco and Asda have been romping away with Sainsbury's market share, the way the store shelves resemble something in downtown Cairo and the shambles that is the company's attempt to crack internet shopping, King's bewilderment was not surprising-Could it be that he now thinks working with his former Asda boss might give him the inspiration he needs?

Leighton's confidence that King will be in place should his bid succeed is an intriguing insight, though it is far from clear that the two have had any meaningful discussions.

What is also interesting is that the decision last week to appoint a team of investment bankers from Morgan Stanley to shore up the group's defences was taken while King was away from the office for the halfterm holiday.

If the bidders believe there is a chance of lifting Sainsbury's profits anywhere close to where they once were or back to its peak market value of about £7bn, an offer at about 300p a share, compared with 258p at the end of last week, could be justified.

It looks pretty heroic on future earnings expectations, but on an historic basis represents a price/earnings ratio of an altogether more palatable 12.8 times.

Sainsbury would undoubtedly benefit from a spell away from the glaring eyes of its dissatisfied shareholders. Time out of the headlines would also improve its image in the eyes of shoppers while staff morale could only get better. Years of bad publicity have not been good for the loyalty or enthusiasm of either.

And whether you believe that it is a 'good thing' that so much of the retail sector is now in private hands, there is significant evidence to suggest that tough decisions - and there are plenty of these facing Sainsbury - are better taken out of the spotlight.

Despite mounting speculation of a bid for Sainsbury, only one stockbroker, Numis, is currently rating the group's shares as other than a clear sell.

Now might be the time to take a view to the contrary.

In the longer term, a Leighton-run Sainsbury raises intriguing possibilities for the High Street. Leighton makes no secret of his belief that the ideal retail merger would be between Sainsbury and Marks & Spencer.

Clearly at present, such an alliance would have all the merits of two drunks propping themselves up in the bar late on Saturday night.

But don't forget that Leighton is still close with Philip Green - he is chairman of Green's BhS group. And though Green now says he is finished with any ambitions for M&S, few would bet on that staying the way if Stuart Rose stumbles in his efforts to turn round the giant retailer.