Wm Morrison Supermarkets PLC Updates
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The outcome of the takeover battle for Wm Morrison will be decided at a one-day auction to be held on 2 October, the British takeover regulator has ruled.
The Takeover Panel said it could bid for up to five rounds on Saturday as neither the Fortress Investment Consortium nor Clayton, Dubilier and Rice, which have embarked on the UK’s fourth largest supermarket chain since June, have finally declared their offerings.
Each bidder can make a larger bid in the first round. If this is not the case, CD & R’s existing bid of 285 p.
If there is a revised proposal in round one, the other bidder may increase his bid in subsequent rounds. If no winner appears after four rounds, both parties can review their bids in the final round. All revised proposals must be in cash and will only be made public before the auction is completed.
To avoid a situation where equal bids are made, each increased bid submitted by Fortress in the fifth round must have an equal number of cents per share, while CD&R must bid in odd steps.
The board of Morrisons must make a recommendation in favor of one of the two offers by next Tuesday, October 5th. He is currently recommending the higher CD&R offer and a shareholders’ meeting was convened on October 19 to approve it.
Each bidder may make a revised offer outside the auction process before 17:00 on 1 October, or announce that he does not intend to increase his bid – in which case the auction will not proceed. This is what happened in the recent takeover battle for the inhaler manufacturer Vectura.