Wm Morrison shareholder JO Hambro to decline Fortress takeover offer

JO Hambro fund managers said the offer, which has secured a recommendation from the Wm Morrison board, is below the 270p per share level that would be worthy of discussions and consideration.

As previously reported, Hambro on 29 June said Wm Morrison’s board’s rejection of a 230p per share takeover offer from the buyout group Clayton Dubilier & Rice (CD&R) had been the correct decision and that a bid at about 270p per share would justify entering into talks. Wm Morrison’s board recommended the Fortress consortium’s 254p per share offer on 3 July, as reported.

Another of Wm Morrison’s top 20 shareholders, who requested anonymity, said they will not accept the Fortress offer and that they would like to see an offer pitched higher than 270p per share, The Daily Mail item said.

As reported on Wednesday, 28 July, the Singapore sovereign wealth investor GIC joined Fortress’ consortium. Fortress is also in talks with Apollo Global Management about Apollo joining the consortium, as reported.

City sources cited by a Daily Telegraph report said discussions between Apollo and Fortress are close to a conclusion, but added the caveat that terms have yet to be agreed.

The Times also reported Hambro’s comments, quoting Hambro fund manager Alex Savvides. Hambro has reduced its holding in Wm Morrison from 2.97% to 1.93% since news of takeover interest emerged, but said the share sales were part normal portfolio management.

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