Morrisons goes to auction: Fortress and CD&R escalate bidding battle
The bidding battle over supermarket giant Morrisons has escalated, and appears to be heading for a conclusion after the supermarket confirmed it was headed for auction.
Private equity bidders Fortress and Clayton, Dubilier & Rice have spent the past two months outbidding each other in an attempt to acquire what many analysts believe is an under-priced firm.
But with both bids not declared final, the Morrisons board is hoping for a final push north of the current bidding at around £7bn, with CD&R currently ahead.
Fortress are believed to have strengthened their bid in recent weeks with other investors joining a consortium, giving it additional firepower.
Shareholders will be presented with the CD&R offer to potentially approve it on or around 25 September, the supermarket giant said in a filing.
The CD&R meetings will be convened for a date in or around the week commencing 18 October, while the meetings to approve the Fortress offer will be adjourned until the same date.
The takeover has spooked trustees of Morrisons’ pension funds, who warned in late August that the £7bn private equity buyout would “materially weaken” their financial position.
Trustees demanded additional security over some of the supermarket’s assets.