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So it now looks like the current shareholders will reject this offer thinking that Morrisons is worth a lot more. But if the bidders including the new possible bidders decide NOT to offer more than £2.70 then it's all off and the sp falls back to £1.80 ish for the current management to build up the company over the next 2-3 years
It all looks like the senior situation again.
Another major shareholder...
JO Hambro :
"We reiterate our view that any offer for the group approaching 270p-a-share merits engagement. We believe the market shares this sentiment."
https://t.co/DqTOxTVEK0
FT reporting this evening that the Singapore Sovereign Wealth fund is joining the fortress lead PE consortium
I think this now confirms that if they bid higher all they want to do is split up Morrisons for short term profit, and very bad for any long term shareholders.
Its unlikey thats the £2.54 vote will be put to share holders. Its now up to fortress group to come up with a more realistic improved offer or walk away.
Just pondering what will happen to the share price if the vote goes against the takeover? Do you think the price will plummet back towards the share price of 2 months ago. Or could it hold / rise in the hope that they will have to make a higher price bid to get it accepted ?
Appreciate any thoughts.
MRW largest shareholder "not inclined" to accept the Fortress offer.
https://www.reuters.com/business/morrison-stakeholder-silchester-says-not-inclined-support-fortress-takeover-2021-07-27/
IMHO..............DYOR
"Clayton Dubilier & Rice is speaking with potential equity partners as it prepares an improved offer for British grocery chain Wm Morrison Supermarkets Plc, people with knowledge of the matter said."
https://www.bloomberg.com/news/articles/2021-07-26/cd-r-is-said-to-seek-equity-partners-for-improved-morrison-offer
The risk is what happens if the bid does not get 75% approval from shareholders. Do the bidders walk away? If so does that send the sp back down to the 180s or will the market keep the sp near the bid prices since pe obviously thinks there is still profit to be made at this raised valuation.
Bidding war. CD&R is talking with potential equity partners on a fresh bid for Britain's Morrisons, people familiar said. An offer may come within days, aiming to beat the £6.3 billion Fortress proposal that has already been accepted. Apollo has said it's in talks to join the Fortress bid. BNP, Goldman and JPMorgan are advising CD&R.
My question is, do they come out with a similar sort of offer but with a lot more fanciful guarantees or lay all their cards out with a knock out bid with non of the sugar coating.
Did the same a few weeks ago, may be the wrong decision but let's wait and see, happy with the profit made other offers seem a tad slow coming in .
Might as well sell my MRW shares and move on. Offer is 252 + 2p special dividend.
Open market is 260 ish.
Originally bought at 192 a few years back, as a reliable dividend share. With the outside chance of a takeover due to all the land that MRW owns. But I expected a higher offer if that ever happened!
Mydog I would agree that the downside is so much greater then any further price increase. The likes of Amazon wouldn't need to up the bid by very much and would definitely be welcomed with open arms as it would be seen as a continuation of business. Real value and hence a higher offer can only be truly realised by fully asset striping the business which will not get approval hence the bids will remain low. The board could quite easily replicate what Fortress and Co are planning to do, and pay existing shareholders a special dividend, but they are clearly motivated by their multi million pound payouts imho. Having recently got a bloody nose for asking to high a salary increase, the same could well happen when they seek 75% approval.
Is it my imagination - are the shorters looking at this now!
ASK £282.40
: 268.00Bid: 282.40Ask: 250.60Change: 1.50 (0.56%)
mattwsh2904,
It's all (the 2p dividend) in the Scheme Document, which you can find by pressing the "RNS" button near the top of this "LSE" page and looking for the RNS announcement at 07:00 on 22 July "Publication of Scheme Document".
https://www.lse.co.uk/rns/MRW/
I hope that helps.
Mike.
Anyone know anything about this 2p special dividend, it states declared but can't find much about it.
https://www.dividendmax.com/united-kingdom/london-stock-exchange/food-and-drug-retailers/morrison-wm-supermarkets-plc/dividends
And don't forget, Amazon can make an offer in shares or a combination of shares and cash, which the other bidders cannot. This gives Amazon the ability to make a far higher offer than the others and still have it make economic sense.
Amazon could probably buy Morrisons by looking behind the sofa at Amazon HQ after Bezos sat on it.
Lordfinton....agreed but Amazon not short on cash lets face it
Any new owner of Morrisons is going to want to keep the Amazon contract anyway since it accounts for a large and increasing part of turnover.
"Morrisons supplies Amazon Prime members with same-day food deliveries. 'Morrisons on Amazon' now accounts for over 10% of sales in the majority of Morrisons stores where it is offered."
***
For Amazon a MRW purchase could be the UK start of wider grocery ambitions.
This US article speculates on why Amazon bought Wholefoods and their ultimate aim.
https://slate.com/business/2021/06/why-amazon-bought-whole-foods-groceries-online.html
"Amazon’s actual goal, which is same-day grocery delivery to everybody, everywhere. Online grocery shopping has been Amazon’s white whale for some time now. Groceries make up a consistent chunk of most people’s spending, and they’re kind of the only online shopping niche that Amazon hasn’t yet been able to dominate."
Scheme documents online,if Fortress offer goes through,Morrisons shares delisted Aug 25th.
My view is that this ends with Amazon. They wait for all the players to play their cards and then just say +20p. No point in jumping in too early and forcing a bidding war. IMO Amazon have got so much enmeshed business with Morrisons that they can't afford to let it slip away but equally why pay £3+ when they might be able to get them for 280.
Have until 9th August to make an offer or we'll be voting on 254p deal.