Shares in Wm Morrison surged by a third yesterday after a giant American private equity firm tabled a £5.5 billion offer for Britain’s fourth largest supermarket chain.
The FTSE 250 group dismissed the approach from Clayton, Dubilier & Rice, but shareholders expect the buyout firm to return with a higher offer. The New York-based predator, which employs Sir Terry Leahy, the former Tesco boss, as an adviser, has four weeks to sweeten its 230p-a-share bid or walk away.
The raid threatens to shake up the British grocery industry further after the recent takeover of Asda by Zuber and Mohsin Issa, the petrol station tycoons, and TDR Capital, the American private equity firm. Sainsbury’s shares rose by 3.8 per cent and those of Tesco added 1.7 per cent, outperforming the FTSE 100.
Read more/Source: The Times
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