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Key shareholders of the British supermarket had signalled that the Fortress offer was too low, which motivated the buyout group to pre-empt a counter offer from CD&R and raise its bid from 252p to 272p per share.
Now, it is expected that CD&R will have to raise its bid to at least 275p per share – but this could rise to 280p to lock things in.
Morrisons’ board would likely not have agreed to a deadline extension on the shareholder vote on the takeover if the weren’t relying on a rival offer, according to reports in the Times citing people with knowledge of the matter.
The current lead bidding group is headed by Fortress Investment Group, an American investment management company which has ties with Japanese conglomerate SoftBank, and included Canadian pension fund CPPIB and a unit of Koch Industries, KREI.
Following its last increased bid, Fortress said it “remains committed to becoming the new owner of Morrisons and to being a responsible long-term steward of this great British company through the next stage of its evolution.”
Source: City A.M.
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