Private equity firm Clayton, Dubilier & Rice has increased its offer for Wm Morrison Supermarkets PLC (LON:MRW) to 285p per share. The offer has been recommended by the Morrison’s board.
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That’s ahead of the current offer from rival firm Fortress, which following the announcement urged Morrisons investors to “take no action” and said it would make a statement in due course.
Morrison shares rose 4.4% following the announcement to 291.4p per share.
The Bidding War For Morrison Reignited
Nicholas Hyett, Equity Analyst at Hargreaves Lansdown:
“Another offer from Clayton, Dubilier & Rice has reignited the bidding war for Morrisons. The improved offer has got the backing of management, and a higher price might seduce some shareholders who were previously sceptical about whether the company was being sold at the right price.
This might not be the end of the story. Rival bidder Fortress has urged investors to hold fire on accepting the deal and are expected to make a further statement in due course. With the shares currently trading above the new and improved offer price, the market clearly thinks a better offer is a distinct possibility.”
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