// US private equity firm CD&R given deadline to place rival Morrisons takeover bid
// UK takeover panel has given it until 5pm on August 9 to make a firm offer
// The deadline is seven days before Morrisons shareholders vote on a Fortress-backed £6.3bn bid
Clayton Dubilier & Rice (CD&R) has been set a deadline to table a rival bid for Morrisons or walk away from the takeover battle for the Big 4 grocer.
The UK takeover panel said the US-based private equity firm, which had an original £5.5 billion approach rebuffed last month, has until 5pm on August 9 to make a firm offer.
Since turning down CD&R’s proposals, Morrisons’ management have agreed a £6.3 billion takeover by a consortium involving private equity rivals Fortress and Apollo.
- Morrisons takeover battle ramps up as CD&R mulls offer
- Apollo pulls out of Morrisons takeover talks but could join Fortress bid
- Will Morrisons benefit from a Fortress takeover?
It is understood that CD&R is working on a financial package to allow it to put forward a second bid for the retailer.
The new deadline for an offer is seven days before Morrisons shareholders will vote at a general meeting on the current Fortress-backed deal.
Apollo Management had initially been in the frame to compete in a three-way bidding war but decided to join forces with Fortress earlier this week.
Shares in Morrisons are currently at 265p, reflecting a feeling among investors that it is likely to be sold for more than the 254p per share deal agreed with Fortress.
Morrisons also published bid documents which show that bankers and advisers are in line to take home around £275 million if the proposed takeover goes ahead.
Advisers could receive around £169 million for financing the deal, with bankers set to gain £36 million for broking advice for Fortress, as well as £17 million in legal advice.
Morrisons would also pay £42 million to advisers involved its process.
with PA Wires