Share Name Share Symbol Market Type Share ISIN Share Description
Morrison (wm) Supermarkets Plc LSE:MRW London Ordinary Share GB0006043169 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 286.40 286.60 286.70 - 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Food & Drug Retailers 17,598.0 165.0 4.0 71.8 6,902

Morrison (wm) Supermarkets Share Discussion Threads

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Morrisons tries to soothe farmers’ fears over takeover

Morrisons boss David Potts has told farmers commitments by its US buyer “carry genuine weight”

Morrisons is under mounting pressure to extract legally binding commitments from the US consortium behind a £9.5bn takeover that it will not damage the legacy of the supermarket’s founding family.

Morries Chairman, CEO and CFO are former Tesco colleagues of Tony Hoggett. I wonder if they are mates.
Or buy Tesco instead given the size of Amazon.

From Phil's post above:

Amazon has appointed Tony Hoggett, a veteran of British supermarket chain Tesco, to run its physical stores, the U.S. group said on Friday.

Another one for the Tsco BB ;)

Amazon can always make their move after Morrisons have gone private.
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CD&R Weighs Fresh Pledges to Stay in $9 Billion Morrison Race

Clayton Dubilier & Rice is pushing ahead with its pursuit of British grocery chain Wm Morrison Supermarkets Plc, as it seeks to beat an agreed 6.3 billion-pound ($8.7 billion) bid from Fortress Investment Group, people with knowledge of the matter said.

Morrison has granted CD&R access to confidential information as it works on an improved offer, the people said, asking not to be identified because the information is private. In addition to a potential increase in its bid, the buyout firm is considering what additional commitments it can make to win over Morrison’s board, the people said.

CD&R has plenty of time to consider its options, as the deadline for it to submit a new offer isn’t until early August, the people said. The private equity firm is unlikely to rush into submitting a fresh bid, as there’s little advantage in showing its cards early. As CD&R seeks to trump Fortress, it also has to worry about a potential rival offer from Apollo Global Management Inc., which said July 5 it’s studying a bid.

Morrison Chief Executive Officer David Potts is planning to meet U.K. Business Secretary Kwasi Kwarteng on July 16 to discuss the potential takeover, according to the people.

Deliberations are ongoing, and there’s no certainty CD&R will proceed with a fresh bid, the people said. Representatives for CD&R and Morrison declined to comment.

A spokesperson for the U.K. government said overseas investors play a “major and positive role” in stimulating economic growth.

“We are committed to ensuring that the U.K. remains open for business, while protecting the livelihoods of British workers,” the representative said in an emailed statement. “In most cases, it is right that mergers are treated as a commercial matter for the parties involved.”

Fund manager JO Hambro sells out of Morrisons despite calling for higher bids


The current leading bid from an outfit called Fortress is 252p a share, along with a clutch of warm, fuzzy but not legally enforceable agreements to keep things just as they are; no financial engineering here, honestly. The Morrison directors, perhaps believing they are also part of Fortress’s glittering future, have rather foolishly been seduced into recommending it. Lurking in the wings is Apollo, another private equity group, which may, or may not, bid more. Perhaps they will say they love the executives even more than Fortress does, and promise to behave even better in the fields.

Or perhaps they will bring the question back to earth, by simply bidding more, and propose to run the business to maximise profits.

That is all on top of the tax advantages of private equity. In an era of administered interest rates, debt is dirt cheap and can be offset against corporation tax on profits, unlike equity. To make matters worse, the executives at private equity businesses routinely have a “carried interest” which is a seven-figure payday thinly disguised as a capital gain, and which attracts tax at 28 per cent rather than the 45 per cent on income. Small wonder, then, that the Morrison executives can see the broad sunlit uplands – and not necessarily on the company farms.

Both bids so far have been announced over the weekend, Apollo and CD&R have been actively "market-making" via their bankers (see Form 8.5 announcements) this week so I imagine there will be a bid tomorrow. CD&R will probably wait for Apollo to go first. Yawn.
philanderer; it is not ministers demanding, it is a shadow minister (who is simply doing what they do regardless of party - attack ministers)and, no doubt, backbenchers. It is surprising how little government spokesmen have said, suggesting approval would be forthcoming (although I assume there would be conditions and some hoops to go through for appearance sake). Things could change rapidly if another bidder emerged offering fewer assurances and with less enthusiasm from the board.

Difficult to put too many obstacles in the way when you have allowed bigger US takeovers in the past (Asda) and have been facilitating the growth of Aldi and Lidl via local councils.

Ministers demand probe into £6.3bn Morrisons takeover: Fears over US buyer and the impact on UK's food supply chain

Look under the broker price forecasts at what they imply. The minimum forecast is 254, because the Fortress offer is binding. So a forecast of 254 simply means the broker does not expect a better offer (or at least does not expect a better offer which will not be rejected for reasons of commitments - or lack of them - or by politicians/regulators). A forecast of 262 just indicates an expectation of one further acceptable bid, as opposed to a bidding war. The forecasts are less to do with price and more about how the brokers see the positions of the possible bidders. I am inclined to see a takeout somewhere in the 260s. To go higher will require something akin to the scenario of Barbarians at the Gate (the book about the bidding war for Nabisco in the 80s (and in which KKR was a player). In that case the takeout price was dictated by PE machismo rather than financial calculation. It seems unlikely they could be that stupid again, but we can hope.


Morrisons defends its private equity takeover amid calls for Parliament to scrutinise the £6.3bn deal

Morrisons last night sought to head off political opposition to a private equity takeover of the supermarket amid calls for Parliament to scrutinise the £6.3billion deal.

In a letter to government ministers and MPs in constituencies where it is a top employer, the grocer claimed that buyout firm Fortress and its backers would be ‘good stewards’ of the business.

It listed undertakings the consortium has given on pay, suppliers and properties, despite questions about how binding these will actually be and for how long.

Brandes once again sell a chunk for a price beginning with a 3..... interesting
100% with you on AMAZON idea, that is if they decide to get involved. I can't see Amazon changing much how the business operates. Having said that if it gets sold we the shareholders and therefore the owners will get our noses pushed out (of the trough).
The way I see it, if you are looking to preserve the business as is, you can get away with a lower offer and will have the boards blessing as demonstrated by the accepted offer from Apollo.
If you are perceived to want to load the business with debt, cut costs and asset strip you will have to pay up.
Therefore, Amazon will not have to bid very much higher than the existing accepted offer to secure the business, who would staff rather sell to, a consortium saying the right things or a company like Amazon who are existing partners.
If Amazon does decided to buy I expect an offer close to the accepted offer, they really don't need to pay up

Asset strippers took out Debenhams, Sold their properties, then rented them back to Debenhams.. Is Morrisons next on the hit list ? .. Morrisons own 80 percent of its properties

Morrisons: Government seeks assurances over Fortress takeover bid

Makes sense…. Amazon has a new CEO on the scene. Plus Morrison’s have been selling Amazon products for a few years now. It would be a good entry into the UK market.
Tech leading the way. We need to see some more bids coming in this week. Let’s juice it up a bit.

Amazon could yet make a takeover bid for Morrisons according to analysts as a potential bidding war for the grocer heats up.

Despite accepting a takeover offer, the deal still needs to be approved by shareholders who may well shun the firm if a better offer is made.

Many have pointed to Amazon, which significantly expanded its partnership with Morrisons last August and now sells its entire range on its platform.

“Amazon’s UK supply chain has become inexorably linked to Morrisons during the pandemic,” ParcelHero’s head of consumer research David Jinks said.

“Not only does it source Amazon Fresh online orders, Morrisons also stocks Amazon’s three, pioneering, till-free Amazon Fresh stores in London.
Morrisons’ Amazon deliveries are now available in around 50 towns and cities across the UK.
The tie-up has become so successful that it now accounts for over 10 per cent of all sales at participating stores.”

Jinks believes a third-party takeover could be bad news for Amazon, which is perfectly positions to utilise Morrisons store estate and established supply chain to help it break into the UK grocery market, an ambition it has been investing in significantly this year.

“Fortress̵7; offer of 254p per share now looks a little low, with the stock price reaching a high of 268p recently,” he added.

“Who has the money to top this offer?
Amazon is known to have a bulging war chest.
Incomer Andy Jassy has worked hand-in-glove with his former boss, Jeff Bezos, and is known to fully support Amazon’s philosophy that you must speculate to accumulate.
Some analysts are saying bidding could go as high as 280p per share, a price well within Amazon’s reach.”

Interactive investor Richard Hunter believes it is “perfectly feasible” that other bids could still be made and that Amazon could yet “emerge from left field as a surprise last minute entrant”.

“UK supermarkets in general are cash generating engines, whose share price gains have been capped by the costs of the pandemic, despite increased sales, making them more attractive on valuation metrics,” he added.

“In addition, Morrisons largely owns its freehold estate, adding another sweetener to any potential purchase.”

Edge by Ascential’s retail analyst Chris Elliott meanwhile believes Morrisons could be too small for Amazon to consider taking over, suggesting it could instead favour Sainbsury’s.

“Amazon and Morrisons have had a partnership since 2016 and there has always been speculation that Amazon would bid for the supermarket to significantly expand its grocery offering.

“However, more than five years later its has yet to submit an offer and with a bidding war on the horizon, it seems unlikely it will choose this moment to strike.

“However, if Amazon is looking to enter the market its option are running short, with Asda sold last year and Tesco’s huge valuation.
It may then feel the pressure to bid but given its acquisition of Whole Foods in the US, it may be looking for a more premium retailer and while it could be tricky, Sainsbury’s is arguably now its best option if it wants to enter the market via a takeover.”

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Mark Kelly, managing director at investment bank Cowen, said in a note on Monday that the “only risk worthy of any level of discussion would be the scope for the UK secretary of state for Business, Energy & Industrial Strategy to intervene”.

But he added that Fortress had gone to great lengths to address this. “There is indeed a very low risk of the UK government intervening.”

'Morrisons chief to be quizzed over £6.3bn takeover: Business secretary Kwasi Kwarteng seeks meeting with chairman'

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