// Morrisons bidder CD&R is considering an increased offer for the grocery chain
// This comes after rival suitor Fortress raised its bid last week
// Following Fortress’ £6.7bn offer on Friday, shareholders will now vote on on August 27
Morrisons bidder CD&R is considering an increased offer for the grocery chain after rival suitor Fortress raised its bid last week.
CD&R previously had until 5pm today to submit a bid for Morrisons.
Following Fortress’ £6.7 billion offer on Friday, shareholders will now vote on on August 27.
Morrisons said CD&R “must now by 5.00pm on August 20 either announce a firm intention to make an offer for Morrisons under Rule 2.7 of the Code or announce that it does not intend to make an offer for Morrisons”.
Prior to Fortress’ increased bid on Friday, which values the grocer at 272p a share including a special dividend, CD&R was preparing a 265p a share approach.
Fortress’ increased offer means that CD&R senior advisor and former Tesco boss Sir Terry Leahy will have to go back to the drawing board to win approval for an increased offer.
CD&R does have financing available for a higher bid, which could stand as high as 280p a share, but is considering whether a higher bid would yield sufficient financial returns.