Aug 23 (Reuters) - Morrisons shareholder Legal &
General said on Monday it believed the true value of the
supermarket chain should be realised following the sweetened bid
from private equity group CD&R, with more attention now being
paid to its property assets.
The British retailer is at the heart of a bidding war
between two U.S. private equity groups. Last week it agreed a
285 pence a share takeover offer from Clayton, Dubilier & Rice
(CD&R), although its shares jumped above the bid price,
indicating the battle could have further to run.
Legal & General Investment Management, Morrisons' eighth
biggest shareholder according to Refinitiv data, had previously
criticised an earlier offer of 230p per share.
It said on Monday it had been worried about a lack of
disclosure around the value of the Morrisons property portfolio,
but with more competitive bids being made, the parties will have
paid more attention to the assets.
"We note the bid from CD&R for Morrisons last week with
interest," Andrew Koch, senior fund manager at LGIM, said in an
emailed statement.
"This gives us some comfort that the true value should be
realised for shareholders including our clients," the statement
added. "However, we continue to look into the other aspects of
the bid, including commitments for the future management of the
business."
The latest offer for Morrisons, valuing the business at 7
billion pounds ($9.6 billion), is the most high-profile deal
amid a raft of bids and counter bids playing out in Britain this
year, reflecting private equity's appetite for UK Plc.
Earlier in the day, shares of Morrisons' bigger rival
Sainsbury's surged 14% after a report that private
equity firms could launch bids worth more than 7 billion pounds
for Britain's second biggest supermarket chain.
($1 = 0.7287 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru and Kate
Holton in London; Editing by David Holmes)