Morrison (wm) Supermarkets Share Discussion Threads

[ashleyjv] 01/7/2021 17:05

1Madasafish. When there is a potential takeover, all the major investors in that company have to declare their holdings / shorts.

[loganair] 01/7/2021 16:00

JO Hambro Capital Management, a top 10 shareholder in Morrisons, has called on Clayton, Dubilier & Rice (CD&R), the private equity firm circling the British supermarket, to increase its offer to £6.5bn.

Private equity interest in Morrisons is understandable. It has a robust and resilient business model which is differentiated amongst its peer group and is more relevant today than it was in 2015 when the current strategy was set,’ JO Hambro said in a statement.

‘While we accept the Morrisons board was correct to reject the recent 230p per share offer by CD&R, in our view there is validity to a bid for the supermarket group. Specifically, we believe any offer for the group approaching 270p per share merits engagement and consideration.’;

According to the funds’ managers, a valuation of eight times earnings before interest, tax, depreciation and amortisation ‘seems reasonable, given the group’s qualities and the potential synergies on offer’.

The potential synergies refer to those that can be achieved given CD&R’s existing ownership of fuel retailer Motor Fuels Group.

‘The combined business (if that were partly the thesis behind CD&R’s bid) would have about 1,200 forecourt sites across the UK. The fuel purchasing and food retailing synergies here are clear to see. But CD&R should pay a fair price in order to access those synergies,’ the managers said.

[nerdlinger] 01/7/2021 13:40

The Form 8.5 disclosures from vampire squid on the face of humanity Goldman Sachs on behalf of CD&R are intriguing, it's like a glimpse behind the curtains of share price manipulation (AKA market-making...) but I don't really know what I'm looking at. 22nd June is especially confusing, the price on the day didn't move much, maybe they kept a lid on it, and they claim to have traded more than 5 times the 20,307,425 volume on the LSE that day:



On top of that JP Morgan did a bit more jiggery pokery for CD&R on the same day, Purchase 13,335,143 Sale 3,241,049.

Can anyone with more insight read anything more interesting into these 8.5s?

[danj1975] 01/7/2021 12:52

The waiting game.... Tick tok....

[philanderer] 01/7/2021 11:46

No imminent revised bid then.

[grafter] 01/7/2021 00:24

'High-octane' approach - CD&R should pay a 'fair price' to merge the supermarket's petrol station arm with its Motor Fuels Group, a combined company that would create a forecourt giant with around 1200 sites across the UK - Hambro

[scotches] 30/6/2021 17:49

Nobody seems able to explain what Pelham are doing.

They have been short MRW for about 8 years and their only action was to add slightly to the position last April. If it is purely a down bet then why no attempt to cash in during the multi-year lows in 2015.

If it's a hedge against a long position then that's a lot of dividends for which the shorter has been liable over the last 8 years.

However the personal wealth of Pelham's Ross Turner suggests he is anything but a mug

"According to the Sunday Times, Ross Turner is among the 20 richest hedge fund managers in Britain with an estimated £300 million fortune, up by £77 million from 2017."

[hades1] 30/6/2021 17:49

CD&R Said to Line Up Banks As It Weighs Bumping Morrison Offer 2021-06-30 14:17:13.519 GMT
By Dinesh Nair and Jan-Henrik Förster (Bloomberg) -- Clayton Dubilier & Rice is lining up more financing banks as it considers raising its 5.5 billion-pound ($7.6 billion) offer for British grocer Wm Morrison Supermarkets Plc, people with knowledge of the matter said.
The private equity firm has approached a number of lenders about joining the financing for the potential acquisition, the people said, asking not to be identified discussing confidential information. Handing a bank a financing or advisory role could help prevent it from working on behalf of any competing bidder for Morrison.
CD&R earlier this month saw a 230 pence-per-share offer for Morrison rejected as being too low. The grocer’s shares have since been trading higher on expectations of an increased bid, closing at 236 pence in London Tuesday.
Top 10 Morrison investor J O Hambro Capital Management Ltd. said the supermarket operator should engage with the private equity firm if it returns with a proposal closer to 270 pence per share, Bloomberg News reported.
Under British takeover rules, CD&R has until July 17 to make a formal bid. Deliberations are ongoing, and CD&R hasn’t made a final decision on whether to proceed with an improved offer, the people said. A spokesperson for CD&R declined to comment.
To gain a competitive edge, acquirers sometimes hire as many banks as possible to make it harder for potential counter bidders to line up advisers and financing.
Britain’s grocery sector has been beset with merger activity in the last few years driven by a highly-competitive market. Stores are grappling with the growth in online shopping as well as challenges from German discounters Aldi and Lidl.
Britain’s third-largest grocer, Asda Group Ltd., was taken over by TDR Capital and the Issa brothers in a 6.5 billion-pound deal. Walmart Inc., the U.S. retailer which owned Asda since 1999, retains a minority stake.

[nerdlinger] 30/6/2021 17:16

And then there was one. Pelham, no change since last year, is the only short position above 0.5%.

[loganair] 30/6/2021 15:53

JO Hambro, which manages funds accounting for 3 per cent of Morrisons. “We believe any offer for the group approaching 270p per share merits engagement and consideration.”;

Last week Legal & General Investment Management data shows as having a 1.58 per cent stake in Morrisons, said it did not expect a bid at 230 pence to succeed.

Silchester, Morrisons’ biggest shareholder with a stake of 15.2 per cent according to Refinitiv data, has declined to comment.

[philanderer] 30/6/2021 15:41

Something has leaked by the look of it.

[1madasafish] 30/6/2021 15:40

What does all this mean ? Are they building positions ?

30/06/2021 15:20 UKREG BlackRock Group Form 8.3 - WM Morrison Supermarkets
30/06/2021 15:16 UKREG State Street Global Advisors Form 8.3 - Wm Morrison
30/06/2021 15:07 UKREG Legal & General Investment Mgmnt Ld Form 8.3 - Wm
30/06/2021 14:56 UKREG Form 8.3 - The Vanguard Group, Inc.: Wm Morrison
30/06/2021 14:48 UKREG Man Group plc Man Group Plc : Form 8.3 - Morrison (WM)
30/06/2021 14:21 UKREG Threadneedle Asset Mgmt Hldgs Ltd Form 8.3 - WM
30/06/2021 12:50 UKREG Bank of Nova Scotia Form 8.3 - Morrisons (WM)

[1madasafish] 30/6/2021 15:37

All the way to £2.70 ?

[1madasafish] 30/6/2021 15:36

Up 5% on no news ? Chinese me thinks you are correct

[chinese investor] 30/6/2021 15:33

Leaky !
Leaky !

[hades1] 30/6/2021 15:29

Another offer coming from CD&R!

[nerdlinger] 30/6/2021 10:11

Defending Morries is wasting the exec's time and our money. The sooner this blows over the better. I don't think the majority of shareholders will approve the sale at any price which would be attractive to an asset stripper. I'll take £6+ though.

[chinese investor] 30/6/2021 08:07

The private equity suitor seeking to buy Morrisons should increase its offer to £6.5bn if it wants the takeover to succeed, a top shareholder in the supermarket has said.

Clayton, Dubilier & Rice (CD&R) must hike its bid from 230p per share to 270p if it wants to seal the deal according to J O Hambro, one of the chain's 10 biggest investors.

J O Hambro said that Morrisons' board was correct to reject the initial offer, which valued the grocer at £5.5bn, but indicated it could back a deal at a higher price.

The investor said: "We believe any offer for the group approaching 270p per share merits engagement and consideration."

Its intervention comes amid speculation that CD&R - which is advised by Sir Terry Leahy, the former Tesco boss - will have to clarify its intentions for the supermarket as soon as in the week. It has until July 17 to make a firm offer for Morrisons.

Other major shareholders, including Morrisons largest investors Slichester, have so far declined to comment.

J O Hambro, which owns 3pc of Morrisons, said the supermarket has "a growing reputation in convenience, wholesale and non-food retailing and a strong presence in forecourt retailing".

It pointed out that CD&R already owns Motor Fuels Group, a major UK petrol station chain. The combined company would have around 1,200 forecourt sites across the UK.

The shareholder added: "The fuel purchasing and food retailing synergies here are clear to see. But CD&R should pay a fair price in order to access those synergies."

A successful tie-up would closely mirror the recent £6.8bn acquisition of Asda by the Issa brothers, owners of petrol station giant EG Group, with co-investor TDR.

Private equity firms Lone Star, Apollo and KKR as well as Amazon have all been listed as a possible interested parties.

A City source close to one of the firms said that it ids conducting basic due diligence, but is unlikely to intervene until CD&R's intentions become clear.

[giardap] 30/6/2021 08:05

True - own portfolio of property and manufacturing, worth a few bob

[leadersoffice] 30/6/2021 07:26

£2,70 still to low. Any successful bidder must pay 3 pounds minimum before the board starts entering into possible takeover negotiations otherwise they should just jog on.

[hades1] 29/6/2021 20:58

Morrisons bidder CD&R should raise offer to £6.5bn, investor saysShareholder JO Hambro said New York-based bidder Clayton, Dubilier & Rice must pay "a fair price" for MorrisonsByLaura Onita, RETAIL EDITOR 29 June 2021 • 6:09pm Daily Telegraph The private equity suitor seeking to buy Morrisons should increase its offer to £6.5bn if it wants the takeover to succeed, a top shareholder in the supermarket has said.Clayton, Dubilier & Rice (CD&R) must hike its bid from 230p per share to 270p if it wants to seal the deal according to J O Hambro, one of the chain's 10 biggest investors.J O Hambro said that Morrisons' board was correct to reject the initial offer, which valued the grocer at £5.5bn, but indicated it could back a deal at a higher price.The investor said: "We believe any offer for the group approaching 270p per share merits engagement and consideration." Its intervention comes amid speculation that CD&R - which is advised by Sir Terry Leahy, the former Tesco boss - will have to clarify its intentions for the supermarket as soon as in the week. It has until July 17 to make a firm offer for Morrisons. Other major shareholders, including Morrisons largest investors Slichester, have so far declined to comment. J O Hambro, which owns 3pc of Morrisons, said the supermarket has "a growing reputation in convenience, wholesale and non-food retailing and a strong presence in forecourt retailing". It pointed out that CD&R already owns Motor Fuels Group, a major UK petrol station chain. The combined company would have around 1,200 forecourt sites across the UK. The shareholder added: "The fuel purchasing and food retailing synergies here are clear to see. But CD&R should pay a fair price in order to access those synergies."A successful tie-up would closely mirror the recent £6.8bn acquisition of Asda by the Issa brothers, owners of petrol station giant EG Group, with co-investor TDR. Private equity firms Lone Star, Apollo and KKR as well as Amazon have all been listed as a possible interested parties.A City source close to one of the firms said that it ids conducting basic due diligence, but is unlikely to intervene until CD&R's intentions become clear.

[loganair] 29/6/2021 17:49

Blackstone inks $2bn deal for Asda warehouse portfolio.

[philanderer] 29/6/2021 15:42

All ok now, dividend received into 'ii' account this morning. Let's see how they do with IMB due tomorrow and TSCO on friday ;-)

[leadersoffice] 29/6/2021 07:55

That isn't actually correct ..,, you are not able to open any new account with EQI and some customers have been migrated over while others such as me and my family are staying out. If however EQI in the future force me to migrate over to Ii..... I will take my money else where. ii are expensive.