LONDON (AP) — Shares in supermarket chain J Sainsbury PLC jumped nine percent yesterday on market speculation that a major Qatari investor may renew its takeover interest.

Sainsbury, Britain's third largest grocer, declined to comment on speculation that the Qatar Investment Authority, was planning to increase its current 26 percent stake in the grocer with an eye to making another bid.

The sovereign wealth fund built up its current stake in the British retailer through investment firm Delta Two before abandoning a takeover approach in 2007.

The chief executive of the QIA is Sheikh Hamad al Thani, the prime minister of the oil-rich state and a member of the Qatari royal family.

Any bid for Sainsbury would require the support of the Sainsbury family, which owns about 15 percent of the business.

"A full bid with the family supporting it seems unlikely, the Qataris topping up their stake is more likely," said Pali International retail analyst Nick Bubb said.

Delta Two unveiled a £10.6 billion takeover proposal in July 2007 but the plan was scuppered by rising financing costs in the early stages of the credit crunch and the failure to agree a funding deal with the trustees of the group's pension fund.

Delta's bid followed an approach by private equity firm CVC at the height of the buy-out boom, which also foundered because of opposition from the trustees.