// The £7bn battle for Morrisons will go head-to-head this week
// CD&R started its pursuit of Morrisons in June, while Fortress entered the fray in July
// Consisting of a maximum of five round, the auction will take place on October 2
The forthcoming Morrisons auction between two US private equity groups is set to go ahead on October 2.
The £7 billion battle for Morrisons will go head-to-head this week in up to five rounds of bids.
Clayton, Dubilier & Rice (CD&R) and Fortress Investment Group have agreed to settle the matter in a one-day auction.
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In the first round, either party is able to make an increased bid on their current offers.
If the auction fails to conclude after the first round, there will be up to a further three rounds, with either firm only eligible to make a bid if their rival has upped the price in the preceding round.
If there is still no clear winner, there will be a fifth and final round, with both offerors able to make increased bids.
Any increased bid lodged in any round of the auction procedure must be at a fixed price in cash in pounds sterling and in whole pence.
CD&R started its pursuit of Morrisons in June, while Fortress entered the fray in July.
Given that neither bidder had declared its offer final, the takeover panel said all of the parties had agreed to an auction process to decide the outcome.
Morrisons is required to make its own announcement by no later than 7am on October 5, setting out the board’s view of the offers on the table and its intended recommendation to shareholders.
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