Sources say that 280p will be the appropriate level for an offer by Clayton Dubilier & Rice
Clayton Dubilier & Rice, the American private equity firm, is preparing to bid for Morrisons this week as the company will look to usurp Fortress.
Having made a bid earlier in the process, Clayton Dubilier & Rice will now need to raise its offer by at least 20% to beat its rival.
Less than two weeks ago, Fortress improved its offer by £400m, raising its bid to 272p, as leading Morrisons shareholders hinted that their previous offer was too low.
The Times reported that Clayton Dubilier & Rice will need to offer at least 275p, while some with better knowledge of the deal have suggested that 280p would be a more appropriate offer.
The board delayed their vote on Fortress’s offer in order to allow Clayton Dubilier & Rice to put forward their proposal.
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.
The Morrisons share price is uppitiest by 0.21% during the morning session on Monday.