Sainsbury up on market talk of pension fund sale

LONDON, June 30 (Reuters) - Shares in J Sainsbury (SBRY.L) climbed over 1 percent to feature among the leading FTSE 100 .FTSE gainers on Monday, as traders cited market talk that the supermarket group was to sell its pension fund.

Sainsbury, Britain's third-largest supermarket group, was not immediately available for comment.

Last week, the Qatar Investment Authority nudged up its stake in Sainsbury, the first time it has bought shares in the supermarket group since it took direct ownership of the stake in January.

Qatar had held an almost 25 percent stake in Sainsbury through investment fund Delta Two, which spearheaded an abortive takeover bid approach at 600 pence a share last year.

"Some are putting one and one together and making three," a London trader said. "Suggestions are that they can offload their pension fund and it be a prelude to another takeover offer." At 0717 GMT, Sainsbury shares were up 1.3 percent at 312.75 pence. (Additonal reporting by Mark Potter) (Reporting by Michael Taylor)