// Consortium led by Fortress increases its takeover bid for Morrisons to £6.7bn
// This marked £400m increase on its previous offer
// It comes amid “speculation regarding a possible counter-offer by CD&R”, and opposition from some shareholders
The private equity-backed consortium vying to buy Morrisons has increased its bid for the supermarket chain to £6.7 billion amid speculation of a rival bid.
The consortium led by US private equity firm Fortress – which is also the owner of Majestic Wine – has increased its previous offer by £400 million.
The consortium said it increased its offer amid “speculation regarding a possible counter-offer by Clayton, Dubilier & Rice (CD&R)”, a rival US private equity firm which saw a £5.5 billion approach rejected last month.
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- Morrisons braces for CD&R counterbid
- Bidders expect to clear CMA rules for £6.3bn Morrisons offer
UK takeover regulators had given CD&R a deadline of August 9 to either place its own firm bid for Morrisons or walk away.
It also comes after a string of Morrisons’ investors – including largest shareholder Silchester – said they would not back the original 254p per share offer agreed.
The latest £6.7 billion offer will value Morrisons at 272p per share.
The bidding consortium is being led by Fortress, along with Singaporean sovereign fund GIC. Another private equity firm Apollo, is still in talks to join the consortium.
Investors will have their say on the offer, which is already supported by the Big 4 retailer’s board of directors, at a general meeting on August 16.
“Morrisons directors believe that the increased Fortress offer is in the best interests of Morrisons shareholders as a whole, and accordingly unanimously recommend that Morrisons shareholders vote in favour of the resolutions required to implement the increased Fortress offer,” the company said in a stock market statement.
with PA Wires
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