Morrisons advisers set for £300m fees bonanza

THE private equity firm seeking to snap up Morrisons has unveiled plans for a sweeping review of the grocer’s property portfolio, as bankers and lawyers prepare to share in a £300m payday if the deal goes ahead.

Fortress said it will conduct “a fuller evaluation of the group and its operations and organisational structure” within six months if its £6.3bn takeover bid succeeds – including a detailed look at the hundreds of freeholds owned by the company.

Although Fortress repeated a reassurance that it does not plan to sell a significant chunk of Morrisons’ store estate, the plans are likely to raise concerns among campaigners who fear the bidder will seek to extract as much value as possible while loading the chain up with debt.

Kwasi Kwarteng, the Business Secretary, voiced his support for the takeover, having previously asked to meet with the grocer’s management to seek assurances about its future.

In an interview with LBC, he said: “Morrisons chairman Andy Higginson talked to me about the deal and I said

that this is a vote of confidence to the UK. It is not a bad thing if foreigners want to come and buy really good assets in your country. It means you are attracting capital, you are attracting investments and that creates jobs”.

Fortress’s proposals were revealed in a circular for Morrisons investors ahead of a vote on the takeover on Aug 16. The documents also showed that advisers to the two sides could earn a maximum of £312m in fees. Bankers, lawyers, spinners and accountants acting for Fortress are in line for up to £263m. Morrisons will spend up to £49m, mostly on fees for advisers at Rothschild, Jefferies and Shore Capital.

Softbank-owned Fortress is leading a consortium that struck a deal with Morrisons’ board this month. It has funding from Canada Pension Plan Investment Board and US billionaire Charles Koch.

Fortress said it will examine the longterm real estate strategy, executive pay and options for Morrisons’ petrol stations if it gets shareholder approval.

The Morrisons bid must be backed by 75pc of shareholders to be successful. Morrisons shares closed up 1pc at 267.9p.