RE: Takeover bid of 230p rejected20 Jun 2021 13:09
Morrisons has rejected a £5.5bn takeover proposal from US private equity firm Clayton, Dubilier & Rice.
The UK's fourth-largest supermarket, with 118,000 staff, said the offer "significantly undervalues" the firm.
CD&R, where former Tesco boss Sir Terry Leahy is an advisor, confirmed it was considering a formal bid after weekend media speculation about its plans.
The US firm has previously made investments in the discount shop chain B&M, from which it made more than £1bn.
Morrisons said in a statement it had "evaluated the conditional proposal together with its financial adviser, Rothschild & Co, and unanimously concluded that the conditional proposal significantly undervalued Morrisons and its future prospects".
CD&R's proposal, worth 230 pence a share, does not constitute a formal offer, and under UK takeover rules it has until 17 July to announce a firm intention to bid or walk away.