Morrisons adjourns shareholders' meeting, CD&R still looking at offer

The Takeover Panel ruled that CD&R must, by 5pm today (9 August), either announce a firm intention to make an offer for Morrisons under Rule 2.7 of the Takeover Code or announce that it does not intend to make an offer for the supermarket chain.

Given that CD&R has asked for an extension, the board of Morrisons has opted to adjourn the court meeting and general meeting required to implement the increased Fortress offer – these are due to be held on 16 August. The meetings have been postponed to 27 August.

Both Morrisons and CD&R are still waiting for the Takeover Panel to set a revised deadline by which CD&R must clarify its intentions.

The Morrisons board stated that it continues to believe that the Fortress offer is "in the best interests of Morrisons' shareholders" and that it is still recommending it.

Under the terms of the increased Fortress offer, Morrisons' shareholders would be receiving 272 pence per share. This is up from the 254 pence price that Wm Morrison top-10 shareholder JO Hambro said it would not accept in late July, as it was below the 270 pence per share level that would be worthy of discussions and consideration.

In late June, Morrisons' board rejected a 230 pence per share takeover offer from CD&R. CD&R was thought to be working on a 265 pence per share offer before Fortress submitted its improved offer, according to a Daily Telegraph report.

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