Ex-tesco boss given more time for Morrisons bid

SIR TERRY LEAHY has been given two weeks of breathing space as he races to put together a takeover bid for Morrisons which can beat the £10bn offered by rival Fortress.

The US private equity firm Clayton, Dubilier & Rice (CD&R), where former Tesco boss Sir Terry is a senior adviser, has been told by the Takeover Panel that it must make a firm offer for the grocer by 5pm on Aug 20 or walk away.

CD&R was originally set a deadline of yesterday to put up or shut up, but on Friday Morrisons asked the mergers regulator for an extension after Fortress increased its offer to win over investors.

The panel typically grants extensions to bidders only if it believes interested parties are serious about making a counter bid.

Morrisons’ board has recommended that shareholders accept the Fortress offer. However, it has postponed a vote on the decision until Aug 27 – 11 days later than previously scheduled.

The bid by Fortress represents an offer of 270p a share, plus a special dividend of 2p.

Fortress – which is owned by Japanese investment behemoth Softbank – is working with bidding partners Canadian Pension Plan Investment Board; the real estate arm of US oil billionaire Charles Koch; and Singapore’s sovereign wealth fund GIC.

Morrisons’ shares closed just below 279p on Friday, their highest level since 2013. The stock was flat yesterday.

Fortress’s latest offer values Morrisons equity at £6.7bn with a further £3.2bn of debt set to be taken on, making the deal worth £9.9bn.