Morrisons is at the centre of a takeover battle
(Picture: PA Media)The £10 billion takeover battle for Morrisons is due to result in a quick-fire one-day showdown, with the takeover panel revealing a auction will take place this weekend.
Rival suitors Clayton, Dubilier & Rice, the US private equity firm, and a consortium led by investment group Fortress, have been locked in a more than three month bidding war to take control of the UK’s fourth largest grocer.
Various proposals have been made, with the most recent offers being 285p per share from the former, which Morrisons’ board has backed.
The takeover panel today said on the basis that neither party has declared its offer final, a competitive situation continues to exist.
It said an auction procedure will take place on Saturday October 2, with a maximum of five rounds for the bidders to make their final offers.
Morrisons then has up until the morning of October 5 to make a recommendation to shareholders from the final deals on the table, which the shareholders will vote on later that month on October 19.
The takeover target has attracted interest due both to the huge amounts of cash it generates and its £6 billion property portfolio.
CD&R’s most recent proposal values the supermarket chain at £9.9 billion when taking into account its £3.2 billion net debt.
