L&G calls for certainty over Morrisons’ top roles after Leahy is lined up as chair

A MAJOR Morrisons shareholder is seeking assurances over who will run the supermarket chain following a planned takeover orchestrated by extesco boss Sir Terry Leahy.

Andrew Koch, senior fund manager at Legal & General Investment Management (LGIM), a top 10 shareholder in Morrisons, said the group will “look into” aspects of a £7bn takeover bid from Clayton Dubilier & Rice (CD&R) which was backed by the supermarket’s board last week. These aspects include “commitments for the future management of the business”.

Sir Terry, who retired from Tesco in 2011 after 14 years as chief executive, acts as an adviser for CD&R. The Sunday Telegraph reported that Sir Terry is being lined up as the next chairman of Morrisons if the CD&R bid is successful.

The 285p-a-share approach put CD&R back in pole position to buy Morrisons, gazumping an earlier offer from rival American suitor Fortress. Fortress has said it is considering its options.

While questions continue to swirl over how the company will be run under new owners, LGIM suggested that a tussle for the supermarket group had soothed earlier fears over whether the business should be taken over. “A significant concern has been the lack of disclosure around the value of the property portfolio. With more competitive bids being made, the bidding parties will have paid close attention to this during their due diligence.

“This gives us some comfort the true value should be realised for shareholders including our clients. However, we continue to look into the other aspects of the bid, including commitments for the future management of the business.”

It comes as a sign of thawing tensions, with LGIM having previously said CD&R “would not be adding any genuine value” in a takeover. Morrisons shares closed up 0.4pc at 292.1p.