Deals

Morrison Surges Above Rejected $7.6 Billion Buyout Offer

  • Private equity firm has 28 days to confirm bid or walk away
  • Morrison owns most of its stores, providing value to any buyer
Morrison Surges After Rejected $7.6 Billion Buyout Offer
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Wm Morrison Supermarkets Plc surged above the value of Clayton Dubilier & Rice LLC’s 5.5 billion-pound ($7.6 billion) bid, indicating the private equity firm may have to pay significantly more or fend off rival offers for Britain’s fourth-largest grocer.

The supermarket operator, which employs close to 110,000 people in Britain, has already rejected the 230 pence-a-share proposal that was disclosed over the weekend, setting the scene for a short but potentially heated takeover battle. Under U.K. takeover rules, CD&R has 28 days to make a firm offer or walk away.