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Gone for 7 bill. Just seen colleagues site
No bid from Fortress?
JP Morgan acting on behalf of CD&R have today announced a net long buy of 5 mill shares @296p, so a cost of ~£15mill. (tho' they have a battery of short and long swaps). At face value it suggests they are expecting at least one counter bid from Fortress above that level and are prepared to bid again , so I think we are in for at least one cycle of bid and counter bid tomorrow.
Takeover panel rules . The auction WILL take place unless either offerror makes a "no increase" statement before 5pm today and it will conclude on saturday . The takeover panel commits to making an announcement "as soon as practicable following completion" which in practise means sometime on saturday morning or early afternoon.That will be followed by a spate of RNS's from all the players on Monday morning at 7am.The minimum price is the 285p deal already in place ,but as the SP continues to trade above that, the market is assuming that it will be exceeded.
I am confident we will not get a blow by blow update because of confidentiality around the process , however except something in Sunday press . As for price, the market movement of late has trimmed a few pence off the final price imv . As for Amazon- who knows- a significant strategic shift that could affect their sp likely to put them off imv . We shall see what happens next week.
PREVIEW-Morrisons' fate to be decided in $10 bln Saturday shootout
Fri, 1st Oct 2021 08:00Thomson Reuters
By James Davey
Will we get blow by blow information on the auction as stockmarket closed on Saturday ? Will RNS be issued as we go on ?
https://www.ft.com/content/2b9e0c92-76cf-4c85-b097-afb48698b9df
I am by nature a cautious investor but have traded a few of these auctions before and the pressure to clinch a deal sometimes drives a price well above expectations, in the case of MRW I suspect that the real estate element of the value is the one which can swing a bid of comfortably in excess of £3.I am also deeply cynical about the binding nature of
" promises " made by prospective owners. As a holder in the 230 price range it's a no lose situation.
GLA
All indications are that 300 is only possible if the buyer is willing to make adjustments to the business model with regards debt and real estate but, a 3rd party with deep pockets and a revised business plan that enhances MRW but, doesn’t break it up or load it with debt is easily a better option. Interesting times indeed.
I would imagine that any third party will keep their powder dry until Tuesday's Board recommendation and then make a knockout offer!
The parties in auction have to be aware that they are not only bidding against each other, but also a potential third party, who must be kept out of the process by being unable to match their bids.
We live in interesting times!
Any speculation on the final price? I’m guessing somewhere above 300 but, don’t know if Amazon will/can get involved, if they do there could be serious price movement.
Mince pies now on sale in Morrisons.
Costs of £5m (2 August 2020: £nil, 31 January 2021: £nil) represent fees incurred in the period relating to the proposed takeover of the Group.
That's an expensive offer!
Mixed messages going on. Some bad actual metrics being reported but good underlying messages that this is temp and will get better.
No divi announced although to be expected with an offer on the table. Still looking like these will be ripped from our hands so maybe not much point looking too closely. If two buyers see so much potential why cant share holders.
Profit set to increase, debt set to fall and free cash flow increasing and progress looking good ahead. What's not to like in the years ahead but some will see the bid shining bigger and brighter, well for 5 minutes anyway.
Continue to hold. What a ride.
The Morrisons bidding war is set to be decided in a dramatic auction showdown ‘within weeks’, the Mail has reported.
The Takeover Panel is expected to begin talks with the two bidders and the Morrisons board as soon as this week to draw a line under the three-month battle and end the ‘great uncertainty’ suffered by the business, its employers and suppliers.
The Bradford-based grocer’s £7.02 billion market capitalisation, at Friday’s close, was less than 1 per cent behind Sainsbury’s £7.08 billion valuation, and the market expects the bidding for Morrisons to go higher still.
Bring it on.
What are all the 20 odd RNS form notifications we keep getting everyday on Morrison’s.
Noted. Pity not a UK based business in the running. L&G, Aviva etc for their pension funds? The Treasury may lose much of their Tax take on MRW's profits.
Probably a case of the last man standing and then if necessary the TOP would vet the deal.
It could run a while yet especially if the $/£ rate changes.
Anyone knowledgeable on these matters? What would be the calendar the take-over panel is likely to set for the next stage of bidding process? And how many rounds of bidding before an auction is called? Thanks for any thoughts.
This is the reality of the world we live in unfortunately...especially whilst UK PLC as a whole remains so undervalued. As a lth I will be sad to see this go into US PE hands but I'm happy that we have at least now got a fair valuation for it. This has been so undervalued for so long and there are so many others...MKS is another and it is good to see some sort of recovery over there today because as a MKS shareholder I fear the same will happen to them unless the value is reflected in the SP.
Beware they are only going after its property not the business and then leave Morrison's saddle with debt.
This biding war doesn't want to end! I thought 285p would be the end of this but looking at market reaction it seems another bid could arrive...maybe £3 is not out of reach here? Either way I'm happy to hold and see how this ends...285p should be the worst case here now. GL and well done to holders.
LONDON BRIEFING: Softbank's Fortress doesn't give up on Morrisons
Fri, 20th Aug 2021 08:10Alliance News
(Alliance News) - Softbank-backed investment manager Fortress hasn't abandoned yet its effort to buy Wm Morrison Supermarkets, despite the UK grocer late Thursday agreeing to a new GBP7 billion offer from rival bidder Clayton, Dubilier & Rice.
Fortress on Friday asked Morrisons shareholders to take no action on the new CD&R bid, saying it is "considering its options" with respect to the all-cash offer it made at the start of July and increased at the start of August. It said it will make a further announcement "in due course".
looks like the bidding war not over yet ,292p now