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Extract from today’s Sunday Times
The 252p-a-share offer by private equity group Fortress, backed by a division of Koch Industries and Canadian pension giant CPPIB, represents a 42 per cent premium to the June 18 share price — just before news broke of an offer from Clayton, Dubilier & Rice (CD&R), another private equity firm. It is also comfortably above the 230p-a-share offer tabled by CD&R, which is now said to be considering its options…….
…..Mark Kelly, a managing director at investment manager Cowen, said the Fortress bid may not be the end of the game. “It is likely that Morrisons’ board saw there was a lack of tension in the absence of competition — and therefore once one [private equity] bidder tabled an offer ... it is an appropriate tactic to accept this, make it public and hope that a competitive auction then ensues.”
……
As I explained
This is an opportunistic deal to purchase the property assets of Morrisons - I guess shareholders will get what the highest bidder is willing to pay for these and their is certainly scope for a higher bid.
If its Fortress who win they also have the added incentive of incorporating their Majestic Wine supply chain and warehousing with Morrisons - probably why they will pay more.
As for Morrisons on a day to day basis, I guess the existing board and CEO will carry on as normal with the same freedom of operation - just bigger personal bank balances.
It’s agreed with the board of directors not shareholders.
This is usual with an initial approach.
The board of directors often only agree to the initial approach so as to make the approach/bid public and stoke up further interest from other parties.
Sky, Corus etc
It is rare for the first board agreed bid being the final shareholder agreed bid.
The final bid is usually either a different bidder or the same bidder at a higher level.
Rather amazed you didn’t know that or perhaps you are just winding people up.
Again amazed.
Why do many posters keep saying there will be a higher bid, there will not it's an agreed bid and a done deal. Just because you say it's under valued doesn't mean someone else will come and bid more, remember it's been trading at around the £1.50 mark for ages and that's what you have to compare the bid to. The board have agreed it so move on.
This offer still undervalues the company significantly.It is only ten percent more than the bid they turned down.I am surprised that they did not say two weeks ago that they were in talks with another suiter.In my view a little underhand,trying I think to save their jobs.I think that the share will open between £2.6 and 2.75 in the morning as I think that a deal will eventually will be done round the £3 mark
Not a done deal.
Rival bidders may yet appear.
What a strange thing to say?
The deal is clearly not done.
Odd.
Can’t see the benefit in your post to anyone?
Still a poor offer.
CD&R have until 17th July to make an offer nearer to 270p
A war may commence on Monday.
Opening at 265
Chris
It might be too cheap but its a done deal and better than 230p.
As for me 8% return in only over a week for thinking it was opportunistic and they would have to come back with a higher second offer.
250 nice but still a loss for me.
"what debt are you on about?"
£3 billion debt on latest published accounts?
what's dept?
or
what debt are you on about?
was hoping for a bit more, it’s only 10% above first offer. i think share price will be 254-260 monday. i will probably cash out if it’s near 260.
interesting that falks didn’t come back in (unless i missed it)
It only has ‘Fixed retail estate value’. Trading been swallowed up by our German rivals. Horrendous management, living in the 1990’s. Never ever in 30 years have I seen such a dysfunctional company. Poor WM must be turning in his grave. Run by Dinosaurs.
Such a shame for a local Yorkshire company.
Should get that clown who used to run Sainsbury’s give a rendition of “We’re in the Money’ just before his dream Asda tie-up got kicked into touch.
"Bored of UK quality assets just getting sold at dirt cheap. When was the last time a UK asset was sold at a premium or even fair value?"
Well, those Issa brothers from Blackburn managed to return ASDA to UK ownership ..............
just watched bbc news , bid accepted ,take over bid accepted ,after an earlier bid was rejected this raised bid has been accepted , loads of bull plop infil a final close with the share holders will have to vote on this , the bbc are a complete joke
Wait.
Offer is on the table.
Let’s see the other offers.
When Walmart owned ASDA , they were perfectly entitled to the profits, surely?
As a shareholder I'm voting against this.
I don't care that the share price hasn't done anything for last 5 years. It's not the fault of Morrisons that this well run profitable company with such strong assets has been disrespected so badly over such a long period of time.
So as far as I'm concerned ain't no way no private equity getting this for bargain basement prices.
Bored of UK quality assets just getting sold at dirt cheap. When was the last time a UK asset was sold at a premium or even fair value?
What a joke.
I work for asda, when Walmart took over all they did was screw the profits out of asda , this is another American company probably going to do the same.
Not ever held shares in a company that is being bought out so what should I expect? Been waiting some time to see the share prices hit £2.50+
It's bound to open over 250p on Monday. Insiders pushed it to that on the Thursday spike, surely?
I think it's still a buy at 260p, with at least 3 and maybe 4 predators. There was a curious form 8.3 showing a transaction at 309p, so that's my target.
Who will win? It's a cat fight between Terry Leahy and Jeff Bezos IMO. The others are ringside spectators throwing their hat in the ring to fuel the bid.
Later in article……. Rival CD&R was this weekend considering next steps after its initial 230p per share approach was rejected by Mr Higginson a fortnight ago. Senior insiders said CD&R has “plenty more petrol in the tank”, with some factions inside the Morrisons board more amenable than others to an increased offer.
New York-based rival Apollo is also considering its options. The buyout titan was pipped by the Issas and TDR Capital earlier this year in a battle to buy Asda.
….Tonight, however, rival buyout firms are preparing for a potential bidding war. The Sunday Telegraph understands that Apollo Global Management, another American private equity player, has hired Morgan Stanley and is weighing an offer of its own.
Morrisons is the second British supermarket to fall prey to a buyout in the past year after Asda was snapped up by the billionaire Issa brothers for £6.8bn.