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LONDON, Aug 1 (Reuters) - Private equity firm Clayton,
Dubilier & Rice (CD&R) is poised to come back with a new bid for
Morrisons, stepping up a bidding war for the British supermarket
chain, the Sunday Times reported.
Morrisons rejected an unsolicited 5.52 billion pound ($7.68
billion) proposal from CD&R in June and this month backed a 6.3
billion pound offer from a group led by SoftBank Group
Corp-owned Fortress.
The Sunday Times said CD&R was understood to have been
preparing equity and debt financing for a counter bid which
could come in the next few days.
If successful, CD&R would open Morrisons convenience stores
at fuel stations operated by Motor Fuel Group, which CD&R owns,
and it would work alongside the existing Morrisons' management
team, the Sunday Times said.
Britain's Takeover Panel, which regulates corporate
transactions, said last month it had given CD&R until Aug. 9 to
announce a firm intention to make an offer or walk away.
A spokesman for CD&R declined to comment on the Sunday Times
report.
Last week, British money manager M&G, which owns a
1.08% stake in Morrisons, joined criticism of the Fortress-led
bid, saying it did not reflect the true value of the company.
Morrisons' largest shareholder Silchester has also said it
is not inclined to support the offer for Britain's
fourth-largest supermarket chain. Schroders Plc, also an
investor in Morrisons, is still considering how it will vote.
A third private equity suitor Apollo Global Management
said last month it would not pursue a solo offer for
Morrisons but could join the Fortress consortium.
Shareholders in Morrisons are due to vote on the Fortress
offer on Aug. 16.
($1 = 0.7191 pounds)
(Reporting by William Schomberg and Paul Sandle; Editing by
Giles Elgood, Cynthia Osterman and Susan Fenton)