McColl’s share price falls after cash call comes up short
McColl’s shares were down more than four per cent in early trading Tuesday after an attempted cash call came up slightly short.
The convenience store had been looking to raise around £35m-worth of finance to expand its partnership with takeover-target Morrisons.
The firm had hoped an open offer would raise £5m of the figure, but interest topped out at £3m.
The larger part of the raise, a £30m bookbuild, was completed earlier this month.
Read more: Pension trustees warn Morrisons bidders of risk to retirement pots
At the time, CEO Jonathan Miller said the raise would “accelerate” the firm’s strategy.
McColl’s reported a £6.3m loss after tax in the first half of its financial year.
The proposed takeover of Morrisons by US private equity group Clayton, Dubilier & Rice – who upped an existing offer to jump ahead of a rival bid from a Fortress-led consortium – continues to divide opinion.
Politicians are taking a hard look at the deal, with fears around both pension schemes and job protections top of mind.
Markets seem to expect a yet higher bid to emerge for the supermarket, with shares still trading up on news of the CD&R offer.
Read more: Morrisons takeover could trigger breakup, analysts warn