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LONDON, Sept 29 (Reuters) - The $9.5 billion fight for
British supermarket Morrisons will be decided at an
auction on Saturday, when two U.S. private equity groups go
head-to-head in up to five rounds of bids.
Britain's Takeover Panel said on Wednesday that Clayton,
Dubilier & Rice (CD&R) and Fortress Investment Group had agreed
to settle the matter in a one-day auction.
CD&R, a U.S. private equity firm, started its pursuit of
Britain's fourth largest grocer in June.
Softbank-backed Fortress entered the fray in July, winning
the backing of the board of Morrisons for bids at 252 pence and
then 270 pence a share.
CD&R returned to trump Fortress with a 285 pence offer,
valuing the supermarket at 7 billion pounds ($9.5 billion).
Given that neither bidder had declared its offer final, the
Takeover Panel said all of the parties had agreed to an auction
process to decide the outcome.
Morrisons shares were trading up 1.3% at 296 pence in early
deals on Wednesday. The bid battle is the most high-profile
takeover amid a raft of bids and counter bids for British
companies this year, reflecting private equity's appetite for
cash-generating UK assets.
(Reporting by Paul Sandle; Editing by Kate Holton)