Morrisons has rejected a £5.5bn takeover bid from a private equity firm, saying the offer “significantly undervalued” the supermarket chain.
US firm Clayton Dubilier & Rice (CD&R) has until 17 July to announce a firm intention to make an offer for Morrisons, according to Sky News.
Morrisons said it had evaluated the proposal, with its financial advisor, Rothschild & Co, and concluded that it “significantly undervalued Morrisons and its future prospects.
CD&R confirmed it was “considering a possible cash offer”. However, it added there was “no certainty an offer will be made”.
Employing around 110,000 people, Morrisons is one of the biggest private sector employers in Britain and has a market share of just over 10 per cent. It is also the UK’s fourth largest supermarket chain.
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