Another leading Morrisons investor publicly denounces £6.3bn bid by private-equity-backed consortium
Another leading Morrisons investor has publicly denounced the £6.3billion bid by a private-equity-backed consortium.
Fortress and its backers were in pole position after the supermarket’s board endorsed their offer, worth 254p per share.
Intervention: Investment giant M&G is the latest shareholder to pour cold water on the deal
But investment giant M&G, which looks after more than £3.5billion of savings and holds a 1.08 per cent stake in the grocer, is the latest shareholder to pour cold water on the deal.
Rupert Krefting, head of corporate finance and stewardship, said: ‘We do not believe that the takeover proposal reflects the true value of the company.’
The firm joins a number of major investors to speak out, adding to the board’s humiliation for failing to hold out for a higher offer. Silchester, Morrison’s largest shareholder, JO Hambro and one unnamed top 20 shareholder have all said they will not back the bid because it is too low.
The interventions suggest the company should have held out for higher offers – with Fortress and rival private equity bidder Clayton, Dubilier & Rice weighing how much they need to pay.