Sainsbury Egypt legal case to drag on after hearing adjourned

LONDON, May 3 (Reuters) - A legal dispute in Egypt involving British supermarket chain Sainsbury and its chief executive Mike Coupe is set to drag on after a court hearing was adjourned on Sunday.

Coupe is contesting a two-year jail sentence handed down in absentia by an Egyptian court in September, relating to a business dispute Sainsbury had 14 years ago. Sainsbury has described the sentence for embezzlement as groundless.

Coupe attended a court hearing in the Egyptian city of Giza on April 26 to try to overturn the conviction. That hearing was adjourned, with another set for Sunday May 3.

A spokeswoman for Sainsbury said Sunday's hearing was also adjourned, this time for a couple of weeks. Coupe did not attend.

If the conviction is confirmed, it would put Coupe at risk of arrest in Egypt or any country with an extradition treaty with it.

The issue is an unwelcome distraction for Coupe as Sainsbury grapples with falling sales, food price deflation and a price war.

He is due to present yearly results on Wednesday, with pretax profit forecast to fall 17 pct to 659 million pounds.

Shares (Berlin: DI6.BE - news) in Sainsbury, down 16 percent over the last year, closed Friday at 270 pence. (Reporting by James Davey; Editing by David Holmes)