Two US private equity firms are seeking ownership of the major UK supermarket
Morrisons (LON:MRW) is set to go to auction as two US private equity firms seek ownership of the UK supermarket giant.
The deal will will be facilitated by the Takeover Panel, an independent body in the UK.
In August, as reported by UK Investor Magazine, Morrisons agreed to a £7bn offer from Clayton, Dubilier & Rice. However, Fortress Investment Group, a rival consortium could still outbid CD&R.
Morrisons said shareholder will meet to vote on the CD&R offer on a date in or around the week starting October 18.
The auction process will happen before the shareholder meetings on a date to be decided by the Takeover Panel.
Once the auction process is concluded, Morrisons shareholders will vote on either a CD&R or Fortress offer. This will depend on the board’s recommendation.
Having closed up yesterday, the Morrisons share price is up by 0.55% on Wednesday morning to 292.7p, suggesting that an improved bid is expected.
Morrisons consists of just under 500 stores and over 110,000 employees across the UK.
Morrisons first existed as a market stall in Bradford in 1899 owned by William Morrison. His son then took over the company and opened the first supermarket in the 1960s.
