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LONDON, Oct 2 (Reuters) - Clayton, Dubilier & Rice (CD&R)
has won the auction for Britain's Morrisons with a 7
billion pound ($9.5 billion) bid, paving the way for the U.S.
private equity firm to take control of the UK's fourth biggest
supermarket group.
The Takeover Panel, which governs M&A deals in the UK and
arranged the auction, said on Saturday CD&R had offered 287
pence a share, while a consortium led by the Softbank
owned Fortress Investment Group offered 286 pence.
CD&R's victory marks a triumphant return to the UK grocery
sector for Terry Leahy, the former chief executive of Britain's
biggest supermarket chain Tesco, who is a senior
adviser to the firm.
CD&R's auction offer is only slightly higher than the 285
pence a share offer that was recommended by Morrisons' board in
August.
Morrisons' board, which will meet on Saturday, is now
expected to recommend shareholders accept the new offer at a
shareholder meeting slated for Oct. 19.
If shareholders approve the offer CD&R could complete its
takeover of Morrisons by the end of the month, the second UK
supermarket chain in a year to be acquired by private equity
after a buyout of no.3 player Asda completed in February.
($1 = 0.7383 pounds)
(Reporting by Sarah Young and James Davey; Editing by Kate
Holton)
