- Private equity firm Clayton, Dubilier & Rice have put in an unexpected bid for British supermarket WM Morrison
- Interest in the sector could spark further takeover offers
In recent weeks, we’ve seen an array of bids coming in for British companies that others believe are undervalued. On Saturday, a bid came from US private equity firm Clayton, Dubilier & Rice (CD&R) with an unexpected offer for WM Morrison Supermarkets (MRW), for 230p a share in cash.
The company rejected this offer saying that the board “unanimously concluded that the conditional proposal significantly undervalued Morrisons and its future prospects”. Whilst this may be true, it’s also true that only a sucker accepts the first offer – unless the first offer is outrageously good you do all you can to get the buyer to put pen to paper before they get remorse.