Morrisons bidders to battle for the retailer in auction this Saturday

The defining moment comes following a battle for control of Morrisons between private equity groups CD&R, which is working with former Tesco boss Sir Terry Leahy, and Fortress, which also owns Majestic Wine.

Morrisons originally agreed a deal with Fortress, but later switched to a higher offer from CD&R. 

However, because neither potential buyer declared its offer final, an auction process has been arranged under Takeover Panel rules “in order to provide an orderly framework for the resolution of this competitive situation”.

The cash auction this Saturday will comprise up to five rounds. Following the first, “an offeror will be eligible to make a bid only if the other offeror made an increased bid in the immediately preceding round”.

In the event of a fifth round, “any increased bid lodged by Fortress must be at an ’even’ number of pence and any increased bid lodged by CD&R must be at an ‘odd’ number of pence. In such a final round, “each offeror is permitted to make its offer subject to a condition that the other offeror also makes a bid in that round”.

“As soon as practicable following completion of the auction procedure,” the Takeover will reveal the prices of the offers.

Morrisons must disclose by 7am next Monday setting out the board’s position on the revised offers. 

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