Legal and General Investment Management’s (LGIM) Andrew Koch has said that Morrisons should not be “taken over for the wrong reasons”, after a third US private equity firm revealed its interest in making an offer for the supermarket chain.
Morrisons recently rejected an offer made by Clayton, Dubilier & Rice on the basis that it undervalued the company at £5.5bn. Yesterday (5 July), Morrisons recommended an all cash offer from Bidco, a newly formed company indirectly owned by funds managed or advised by affiliates of Fortress Investment Group, which valued the supermarket chain at £6.3bn, according to The Guardian. Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "WM Morrisons board has recommended shareholders accept the £6.3bn takeover bid from the Fortress-backed consortium, so ...
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