Morrisons falls after shares placing by UBS

 
City A.M. Reporter
SHARES in Wm Morrison fell two per cent yesterday after UBS confirmed it had placed around 100m shares in the supermarket chain at 280p for an institutional seller.

The sale represents a 4.4 per cent stake in Morrisons and is equivalent to eight days worth of volume. The seller of the holding was not immediately known.

However, the size of the disposal closely tallied with a holding owned by Walter Scott & Partners Ltd. That firm declined to comment.

The placing comes less than a week after Morrisons said it would invest more than £200m in a 25-year deal with online grocer Ocado, as it seeks to catch up with rivals.

Shore Capital analyst Clive Black questioned the deal, saying it was “a potential waste of capital that does not yet credibly lead to a profitable grocery online business.”