Private Equity CD&R Prepares Morrisons Counter Offer – Report

LONDON, July 31 (Reuters) – Private equity firm Clayton, Dubilier & Rice (CD&R) to launch bidding war for UK supermarket chain Morrisons, the target of a $ 6.3 billion bid of pounds ($ 8.8 billion) from a group led by another US buyout firm, Fortress, the Sunday Times reported.

The newspaper said CD&R was preparing equity and debt financing for a counter-offer that could come in the coming days.

If successful, CD&R would open Morrisons convenience stores at gas stations operated by Motor Fuel Group, which the company owns, and work alongside Morrisons’ existing management team, the Sunday Times reported.

A spokesperson for CD&R declined to comment on the report.

Earlier this week, UK fund manager M&G (MNG.L) joined in criticism of the Fortress-led bid that Morrisons (MRW.L) accepted, which is worth around £ 6.3bn and exceeds a rival offer from Apollo. Read more

Morrisons’ main shareholder, Silchester, has also said he was not inclined to back the offering from Britain’s fourth-largest supermarket chain. Schroders Plc (SDR.L) is also an investor in Morrisons.

SoftBank Group Corp (9984.T) controls the fortress

Written by William Schomberg; Editing by Giles Elgood and Cynthia Osterman

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