Morrisons (MRW.L) shares surged as much as 35% on Monday on hopes that U.S. private equity firm Clayton, Dubilier & Rice (CD&R) might raise its proposed offer for the British supermarket group or flush out other bidders.
Britain’s fourth-largest grocer by sales behind Tesco (TSCO.L), Sainsbury’s (SBRY.L) and Asda, said on Saturday that it had rejected a proposed 5.52 billion pounds ($7.62 billion) cash offer from CD&R.
The surprise approach underlines private equity’s growing appetite for supermarkets in Britain, attracted by their steady cash generation and freehold real estate assets.
Source: Reuters
By James Davey
