# UK’s Morrisons agrees to raised $9.3 billion offer from Fortress-led group Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-06 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Morrisons Agrees Improved Takeover Deal, More Time For Meta Description: British supermarket Morrisons has accepted a boosted bid of 6.7 billion pounds from Fortress Investment Group, urging for rival consortium to counter offer. URL: https://financedigest.com/uks-morrisons-agrees-to-raised-9-3-billion-offer-from-fortress-led-grouphtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-08-06t102248z2lynxmpeh750knrtroptp4morrisons-m-a-apollo-global-management-1736838039622-compressed.jpg) By James Davey LONDON (Reuters) -British supermarket Morrisons has agreed an improved takeover offer worth 6.7 billion pounds ($9.3 billion) from a consortium led by Fortress Investment Group, but wants a rival private equity suitor to be given more time to make a counter bid. Morrisons said on Friday its board had unanimously recommended Softbank-owned Fortress’ raised offer, comprising 270 pence per Morrisons share plus a 2 pence a share special dividend. However, it later said U.S. [private equity](https://www.financedigest.com/can-private-equity-do-for-africas-manufacturers-what-its-done-for-f1-and-rugby.html "Can private equity do for Africa’s manufacturers what it’s done for F1 and rugby?") group Clayton, Dubilier & Rice (CD&R) had asked for more time to consider a counter offer. Morrisons and CD&R have asked Britain’s Takeover Panel, which regulates takeovers, to extend an Aug. 9 deadline for CD&R to clarify its intentions. Morrisons has also postponed an Aug. 16 [shareholder meeting to vote](https://www.financedigest.com/hsbc-board-recommends-shareholders-vote-against-spin-off-resolution.html "HSBC board recommends shareholders vote against spin-off resolution") on the Fortress offer and set a new date of Aug. 27. That means the Takeover Panel is likely to set a new deadline for CD&R of Aug. 20. Shares in Morrisons closed at 278.8 pence, indicating investors are hoping for a [higher offer](https://www.financedigest.com/credit-suisse-offers-higher-deposit-rates-in-asia-to-woo-the-wealthy-sources.html "Credit Suisse offers higher deposit rates in Asia to woo the wealthy – sources"). Fortress “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](https://www.financedigest.com/british-nurses-to-stage-first-strikes-on-dec-15-20.html "British nurses to stage first strikes on Dec. 15, 20") of its evolution,” it said. Morrisons’ board had previously agreed a Fortress [offer worth 254 pence a share or a total of 6.3 billion](https://www.financedigest.com/copper-miner-teck-resources-rejects-glencores-22-5-billion-offer.html "Copper miner Teck Resources rejects Glencore’s .5 billion offer") pounds on July 3. However, major Morrisons investors Silchester, M&G and JO Hambro all indicated that offer was too low. None of those [investors had any comment on Fortress’ new offer](https://www.financedigest.com/surrenden-invest-partners-with-david-phillips-to-offer-residents-and-property-investors-a-superior-living-experience.html "Surrenden Invest partners with David Phillips to offer residents and property investors a superior living experience "). CD&R had a 230 pence a [share proposal worth 5.52 billion](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3") pounds rejected by Morrisons on June 17. PREMIUM Fortress’ increased offer represents a premium of 52% to Morrisons’ closing share [price of 178 pence on June 18 – the day before CD&R went public with its proposal](https://www.financedigest.com/carrefour-unveils-30-euro-shopping-basket-in-spain-after-government-price-cut-proposal.html "Carrefour unveils 30 euro shopping basket in Spain after government price cut proposal"). For the Fortress offer to pass it needs the support of shareholders representing at least 75% in [value of voting investors at the meeting](https://www.financedigest.com/fintech-incubation-more-value-than-meets-the-eye.html "FINTECH INCUBATION: MORE VALUE THAN MEETS THE EYE"). Analysts have speculated that Amazon, which has a [partnership deal](https://www.financedigest.com/britains-jd-sports-extends-nike-ties-with-partnership-deal.html "Britain’s JD Sports extends Nike ties with partnership deal") with Morrisons, could still enter the fray. The Fortress consortium, which also includes Canada Pension Plan Investment Board, Koch Real Estate Investments and Singapore’s sovereign [wealth fund](https://www.financedigest.com/norway-wealth-fund-employee-sues-for-workplace-gender-discrimination.html "Norway wealth fund employee sues for workplace gender discrimination") GIC, would retain Morrisons’ Bradford, northern England, headquarters and its existing management team led by Chief Executive David Potts and execute its existing strategy. Material [store sale](https://www.financedigest.com/five-reasons-you-need-a-store-locator-and-how-it-can-improve-sales.html "Five reasons you need a store locator and how it can improve sales") and leaseback transactions are not planned. Morrisons has described the consortium as suitable owners for a business with more than 110,000 staff and a deeply integrated [supply chain](https://www.financedigest.com/in-the-supply-chain-clean-data-is-the-fuel-of-the-future.html "In the supply chain, clean data is the fuel of the future"), that includes its own meat and fish processing sites. Morrisons is unique among [British supermarkets](https://www.financedigest.com/looks-arent-everything-british-supermarkets-to-stock-misshapen-fruit-amid-drought.html "Looks aren’t everything – British supermarkets to stock misshapen fruit amid drought") in making half of the fresh food it sells. ($1 = 0.7189 pounds) (Reporting by James Davey; Editing by Paul Sandle, David Holmes and Mike Harrison) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---