South African retailer Steinhoff, which owns Harveys and Bensons for Beds, has made a rival bid of £1.42bn for Argos, outstripping Sainsbury's bid of £1.35bn.
Argos' current owner Home Retail Group received the rival bid at the end of last week, according to reports. The cash offer is estimated to be worth 175p a share, far outweighing Sainsbury's 160p bid made up of cash and shares.

Sainsbury's has until tomorrow (Tuesday, February 23) to confirm whether it will make a firm offer for Argos or request an extension in light of the new bid from Steinhoff.

Steinhoff International, which owns chains in France, Australia and Africa as well as the UK, has until Friday, March 18 to make a firm offer for Argos. The group is partly owned by South African billionaire Christo Wiese, who last year took over New Look and Virgin Active.