Morrisons rejects ‘significantly undervalued’ £5.5bn takeover proposal

Morrisons rejects ‘significantly undervalued’ £5.5bn takeover proposal

Morrisons has rejected a takeover bid from a private equity firm, saying the £5.5bn value “significantly undervalued” the supermarket chain.

It came after the media reported  earlier the approach from one of the world’s biggest buyout firms, Clayton Dubilier & Rice (CD&R).

In a statement, the supermarket chain said: “The board of Morrisons 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.

“Accordingly, the board rejected the conditional proposal on 17 June 2021.”

Morrisons said the conditional cash offer of 230p per share valued it at just over £5.5bn.

CD&R confirmed it was “considering a possible cash offer” and under UK takeover rules has until 17 July to announce a firm intention to make an offer.

Categories: Business News

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