Rival looks to top Fortress bid for Morrisons

Clayton Dubilier & Rice is gearing up to trump a rival £6.7 billion offer for the British supermarkets chain Morrisons this week.
Sources say that 280p will be the appropriate level for an offer by Clayton Dubilier & Rice.
// Clayton Dubilier & Rice prepares to bid for Morrisons this week as the company looks to usurp Fortress
// The American private equity firm has until Friday to make a higher offer

Clayton Dubilier & Rice, the American private equity firm that first put Wm Morrison in play, is gearing up to trump a rival £6.7 billion offer for the supermarket chain this week and to persuade its target’s board to change its recommendation.

The firm, which counts former Tesco boss Sir Terry Leahy as an operating partner, has until Friday’s bid deadline to make a higher offer or walk away.

READ MORE: Morrisons bidder CD&R mulls counteroffer after Fortress raises bid

It started the bid battle in June with a 230p-a-share possible offer, but competition from a consortium led by Fortress, another American buyout group means that it will have to raise its price by at least a fifth to beat its rival.

Less than two weeks ago, Fortress improved its offer by £400 million, raising its bid to 272p, as leading Morrisons shareholders hinted that their previous offer was too low.

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