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There may be a stumbling block
https://www.msn.com/en-gb/money/other/morrisons-facing-petrol-station-probe-amid-fears-drivers-will-lose-out-at-the-pumps-as-shareholders-prepare-to-vote-on-7bn-takeover-deal/ar-AAP8jVA?ocid=msedgdhp&pc=U531
I will vote no because of the very small return for myself and other long time holders. In a few years we could have reached this price with reinvested dividends and natural growth. The company is now in danger of underinvestment and stripping its property portfolio etc for the benefit of offshore funds.
Gerry 557, thanks for your reply. I have voted against but sadly I believe that most BODs nowadays are unfit for purpose.
waylow, you can vote against. I will but it is unlikely to succeed sadly
I strongly bemoan the sale. I purchased Morrisons many years ago at £3.00 a share. Tesco then was £4 , Sainsburys about £ 5.70 , Talk Talk £4., Stagecoach £ 3+, BT £13.+, etc. Why is it that the BOD of all these respective National companies not ever decline these ludicrous offers as serious under valuations which is why they are being snapped up. Why can they not easily see what the buyers easily visualize. In my very own opinion they are just unbelievable and should have never been in the positions they occupy, let's hope Amazon kicks in and allows us some sort of a retentive interest
gmed, I hope you are right but what is at stake is the potential to knock multiple billions off the mcap of amazo to secure a company worth just a few billion , if the US investors see this as a strategy change.
I still can't help but feel that the fat lady still hasn't sung (although she may be warming up in the wings). I have felt right from the start that Amazon would wait for the smoke to clear and then come with a knockout bid above £3. My guess is that Amazon hasn't shown its hand yet because they intend to make an offer in cash and shares and if it came to an auction (in which only cash offers are allowed), they wouldn't be able to participate. Amazon is the only potential bidder that stands to lose if someone else, especially a PE bunch, gets their claws on Morrisons, so don't count them out just yet. I don't think I'm the only one who thinks along these lines, so I would expect MRW to trade tomorrow at something of a premium to the winning bid. All pure conjecture of course, but it's exactly what I would do were I in Amazon's position.
staycool- I blame the government for labour problems because they have been too slow to react [as usual] , the tanker driver and meat processing shortages were predicted and should have been addressed through a transition plan , say allowing foreign workers 6 month permits unti after christmas.
Is the final offer and agreed by the bod's, why would anyone hold out longer to see the sp drop to £2.87 or below on Monday.
All the big boys will bail at £2.90 ish if they can get it but my guess is it will be £2.87 within seconds of open.
I (and anumber of other much brighter and well-informed guys) got it wrong in assuming a final price of over £3, BUT as MRW's register holds several players with a large tranche of stock eg Silchester 13.6%,(who have frequently expressed the view that MRW is worth much more), Blackrock 10% and Threadneedle 9%, getting the 75% needed for approval is not a foregone conclusion.I will hold for few weeks to see what transpires, all holders have to judge whether to cash out now at below but pretty close to 287 or to wait a while, I am not sure this story is ended yet.
How can you blame the government for lack of labour supply when there are 1 million jobs and 1.5 million supposedly looking for work. It must be good to sit at home on benefits.
If market thinks 287 is final price, the sp on Monday will be 275-280 imv. Anything above that suggests another bidder may emerge. I think the government has taken about 10p off the sp , like it has taken 3% off most UK stocks through incompetence in the labiour shortages, fuel crisis, gas crisis and NI increases. UK profits are going to be squeezed in most places , BOO was just the start.
Why hold up proceedings to go through the auction charade and then only increase by 1p? Did each group collude to suppress the final price?
Price will sit just below agreed sale price , I assume at £2:85 ?
Don’t rule Amazon out, may make a move now auction done.
Fortress are clowns don’t understand just sticking a penny on should have put a 286 final bid in weeks back and saved all this nonsense.
I'm sure they'll be a numerous people still saying Amazon are going to bid at any moment.
What a bloody joke that auction was. What were Fortress playing at!? They were willing to pay 1p per share more than the CDR offer. Why bother with waiting for an auction? Should have just tabled it as best and final offer and been done with this weeks ago. Very strange.
Mixed feelings. Still absolutely happy with the price given where this share has traded for so long... I knew this was worth a lot more when I invested way back but I knew we would never see true value given how Undervalued UK plc is and remains. So I'm happy with the price paid but gutted to see a great business go this way. Well done to LTH... Nearly there.
Problem here is U.K. investment fraternity do not value U.K. companies highly enough. Let’s hope Amazon pop up with a bid .
Why a no, the price is only where it is because of the bidding process.
Wonder what price it will open at on Monday if a rejection is possible.
Only £2.87!!!!! is there also the dividend 2p "catch up" ? Very disappointed. Its a NO from me.
Another UK company sold to foreign investment which will be split up and assets sold to recoup the outlay
Nice bit of financial engineering will reap some big dividend payments for the directors of CD&R. I seem to recall reading an article that they were planning to structure this within a financial vehicle based in a tax free location. Net result is less tax reciepts, less job security, higher anxiety about the future among its employees, contractors and food producers all for around £1 profit per share which you would have probably gained through dividend payments over the next 5 years.
Is it worth it ???
Go with your conscious and vote NO to the deal.
Don't let these leeches ruin a perfectly good business for their own personal short term gain.
A bit of an anti-climax. Fortress bid 1p over and CDR then bit another 1p over and Fortress threw in the towel. I was expecting bid increments of 5p and more of a battle. A lot of Shareholders will be a bit miffed because they could have sold on Friday for around the 295p mark.
It is my wife that has the shares through the companies Sharesave scheme (17 payments of 350.00 buying at 154p per share plus she will get a goodwill bonus of 3 months profit (c.900 pounds) so it would be quite churlish to complain it didn't go higher.
Confirmed ,CD&R at 287p per share , subject to 75% vote of shareholders in favour. I wonder whether in light of the vigorous nature of the bidding it might not be approved?