// The Morrisons takeover battle expected to intensify in the coming weeks
// Clayton, Dubilier & Rice (CD&R) is now working on another bid
// The private equity firm failed in a £5.5bn bid for Morrisons last month
The Morrisons takeover battle is reportedly expected to intensify as Clayton, Dubilier & Rice (CD&R) works on another bid.
CD&R is working on the financial package for a return bid with JP Morgan, financial advisers Goldman Sachs and BNP Paribas, The Times reported.
The private equity firm had failed in a £5.5 billion bid for Morrisons last month.
The current frontrunner, US investment firm Fortress, had a £6.3 billion offer accepted and recommended to the grocer’s board.
Fortress is leading a consortium to takeover Morrisons with the Canada Pension Plan Investment Board and Koch Real Estate, with debt being underwritten by HSBC and the Royal Bank of Canada.
Meanwhile, private equity firm Apollo said it would look to join Fortress’ consortium.
Fortress and Apollo would help increase the consortium’s firepower should CD&R return with a bid and would also reduce the amount of equity being put up by each member.
The next step in the process is set to come before July 31 when Fortress posts its takeover documents to Morrisons’ shareholders.