The stock market’s Takeover Panel has confirmed that an auction involving Clayton, Dubilier & Rice (CD&R) and Fortress Investment Group will take place on 2nd October.
Morrisons’ Board of directors accepted a £6.7 billion offer from a US private equity consortium led by Fortress in July, before backing a £7 billion offer from private equity firm CD&R, also US-based, last month.
The auction will consist of up to five rounds of bids. It is expected to conclude after the first round, but if needed, there will up to three additional rounds where the companies will be eligible to make a bid if their rival has upped the price in the preceding round. A fifth and final round will be added if there is no clear winner, in which both firms will be allowed to increase their bids.
Morrisons is required to make its own announcement by no later than 7am on 5th October. Within this announcement, the Board’s view of the offers and its intended recommendations to its shareholders must be laid out.
