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What ever. Still looks so so cheap given we now have a floor of £2.85 will a possible upside of who knows ?
Given interest rates on cash would have thought very much a buy.
The new bid is welcome, but not especially surprising. Now to see what Fortress does. I expect they'll now bow out and if they do, I think we'll be hearing from Amazon shortly thereafter.
LoL.
The market already knew. It had hit £2.80. Then, day before, it hit £2.81.
Indicative of what was to come. But now can comment as it is HISTORIC given that £2.85 has now been made known. Bloomberg was correct in their report today that a bid would or could be tabled today, Thur, 19 Aug 2021 [deadline 5pm, 20 Aug 2021].
Great news. As I have said since the first bid HOLD!!
I hope fellow LTH have held on. 285 now the floor. This is a fair price... Counter bid now a bonus. Well done to holders.
So will a counterbid be made ? And whatabout Amazon? Interesting here.
Bloomberg say they are submitting a revised bid today ! Lets hope it starts with a 3 - I doubt it will but who knows!
CD&R are certainly leaving it late again, unless the offer is in, and the board are sitting on it.
Well hopefully all the hype and speculation will come to an end soon.....unless there is a further extension to snare in a better offer!
Now, it is expected that CD&R will have to raise its bid to at least 275p per share – but this could rise to 280p to lock things in.
Explains why sp is hovering around 280p.
Could divi be because that will be the amount of profit mrw have accrued since last divi? They would be duty bound to pay it as it is shareholders money. Just thinking.
HMRC stopped taxing dividends at source in 2016. There is an annual dividend allowance free of income tax, and the cash element will likely be taxed as capital gain, so perhaps it's a small sweetener to retail investors?
Not completely sure why the special dividend is being proposed, except it will be subject to tax at source which presumably will be retained for a short period. Thats my thinking.
Just out of interest really could anyone explain why the accepted offer includes a small dividend element rather than being all cash ? Is there some significant reason or rationale for this ?
Thanks
In the earlier statement, all parties including Fortress, have agreed to the revised date.
Even though the BOD have agreed to recommend the Fortress offer, they are duty bound to consider any further offers. Remember Shareholder Approval is still required whatever the outcome.
Looks like a lot of profit taking. . . taking place.
Plus all those who jumped in very early this morning at 280 plus after
reading the sunday papers are nusring a little loss.
What wories me slightly, just very slightly, is the possibility that Fortress will either
lose patience, or become insulted by the fact that allowance has been made to
CD&R giving it more time to produce a better offer, which will certainly have to be
in the region of 2.84/ 2.86. So that will leave Fortress out, meaning they will have to
counter . . but will they?
Moriisons is worth £3.00 and any price under that is a steal. If fortress come back with
a counter (and are not upset and insulted) they will have to come within the region of
£2.90.
I do still think that Amazon are in the background somewhere. If I am right they could well
come in at the last minute with closer to £3.00
Was exactly the case recently with KAZ shares….market correctly anticipated the price of three bids and never went above the final bid, although the chances of acceptance were low…seems like 280p is the max here
I just re-checked: Daily Telegraph did use the correct Morrisons.
It was my typo.
Meanwhile, this morning Sky News reports: "Morrison's suitor given more time to "put up" or "shut up" as bidding war looms." @8.14am, Mon, 9 Aug 2021
To read, call up the title. Mon, 9 Aug 2021
Only 1 line of interest: "...indicating investors are hoping for a higher price." This relates to the Fri closing price.
Funny how the share price seems to anticipate and adjust accordingly, just prior to an improved bid being announced.
Someone at the Daily Telegraph can't spell Morrison's. That doesn't inspire confidence in the rest of the article.
I read the article. CDR likely to get an extension, until 20th August for a counter bid. They seem to be aiming for a revised price of £2.80 per the article. That’s nothing too dramatic IMO. Market seems to have anticipated it well.
"Terry Leahy scrambles to get back in race for Morissons."- Daily Telegraph, 2 hrs ago, Sat, 7 Aug 2021 @7pm.
Via subscription.
However, can view:
"Former Tesco boss aims to convince CD & R to RAISE its bid following near £10bn pre-emptive bid by Fortress consortium."
"The man who transformed Tesco into Britain*s biggest retailer is THIS WEEKEND SCRAMBLING to pull together a KNOCK-OUT BID FOR MORISSONS..."
That*s all one can view without subscription for FREE.
Kindly type in the above title to check even though today the stock market is closed on Sat, 7 Aug 2021.
Times article mentions: "Analysts believe Morrisons’ share price, which has flatlined at about 175p for five years, could not have hit such heights without takeover interest."
https://www.thetimes.co.uk/article/surprise-manoeuvre-in-battle-for-morissons-s3l68l8fl
The sp hit 270p exactly three years ago in Aug 2018. In 2007 the price was just short of 350p. More recently it had been unable to get over 200p.
The continued rise of the Germans has crushed grocery margins. What can PE do to make an already efficient grocer trade better when faced with that competitive landscape? Probably not very much so it's back to the initial idea that PE is only interested here because of undervalued property assets.
Amazon might be the only potential bidder actually interested in the actual grocery and food manufacturing business.
"The sad fact is the higher the price goes, the more they'll strip it down."
Not necessarily. The main reason amazon would want morrisons is to ensure the continuity of its operations. I've always thought that they'd be willing to pay a top price simply to prevent one of their major suppliers falling into the hands of an outfit that WOULD strip it down.
The high street is finished. Its only the co-op and Spar, together with BetFred and charity shops. Morrisons is an out of town retailer.