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Fortress lifts offer for Morrisons to 270p per share plus special dividend

Published 06/08/2021, 11:17
Updated 06/08/2021, 11:18
© Reuters

By Samuel Indyk

Investing.com – US-based investment firm Fortress Investment Group has raised its off for Morrisons (LON:MRW) to 270 pence per share plus a 2 pence special dividend. 

Morrisons directors have re-confirmed their unanimous recommendation and believe that the increased Fortress offer is in the best interests of Morrisons shareholders as a whole. The board recommends shareholders vote in favour of the resolutions required to implement the increased Fortress offer to be proposed at the Court Meeting and General Meeting which are due to be held on 16th August.

The two parties had previously agreed to a deal earlier this year, with Fortress offering 252 pence per share plus a 2 pence special dividend to purchase Morrisons.

The new bid from Fortress represents a 7% premium to the original Fortress offer.

Other interest

Clayton, Dubilier & Rice (CDR) had previously had a £5.5 billion bid rejected for Morrisons but The Times newspaper recently reported that the US private equity group was working on another bid.

It is unclear whether CDR still intends to make an offer for Morrisons or whether the increased offer from Fortress will deter the group from upping its bid.

At 11:29BST, shares in Morrisons were trading higher by 2.2% at 277.84 pence per share.

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