SHARES in Wm Morrison leapt more than 30 per cent this morning after the supermarket giant threw out a takeover approach valuing it at £5.5 billion.
The “big four” grocer declared that the “unsolicited highly conditional non-binding proposal” from Clayton, Dubilier & Rice “significantly undervalued” the company.
There is now speculation that Morrisons could become subject to a bidding war however, amid suggestions that Amazon may be a possible suitor. Morrisons already has a deal with Amazon to distribute groceries through the giant online marketplace.
CD&R had tabled a proposed cash offer of 230p per share for the entire share capital of Morrisons.
Morrisons said in a statement to the stock market: “The board of Morrisons evaluated the conditional proposal together with its financial adviser, Rothschild & Co, and unanimously concluded that the conditional proposal significantly undervalued Morrisons and its future prospects. Accordingly, the board rejected the conditional proposal on 17 June 2021.”
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