There are reports that that Sainsbury's initial offer was worth about £1.1bn, but that HRG shareholders are holding out for an improved offer of around £1.6bn, or around 200p-a-share.
But some analysts had been sceptical, and Sainsbury's share price fell when the bid interest was first disclosed. The price was down 0.24% by midday on Wednesday.
'No job losses'
Sainsbury's chief executive Mike Coupe stressed the closure of any Argos stores would not involve job losses.
The leases of around half of Argos' 734 stores across the UK are due for renewal over the next four to five years.