June 20 (Reuters) - U.S. private equity firm Clayton,
Dubilier & Rice (CD&R) is set to push ahead with its pursuit of
British supermarket chain Morrisons despite its initial
offer being rejected, the Financial Times reported https://on.ft.com/3wJic4Z
CD&R now plans to wait to gauge investor reaction and signs
of any political pushback before deciding on its next steps, the
newspaper reported, citing people familiar with the discussions.
The board of Morrisons will seek assurances from any
potential buyer on the future of its workforce, manufacturing
and pensions as the supermarket group prepares for rival bids,
the Times newspaper reported https://bit.ly/3qbuQaC on Monday.
The move from CD&R could spark a bidding war from rival
private equity firms or Amazon.com Inc, which has an
online partnership with the grocer, the Times said.
The Labour Party warned on Sunday that a private equity
acquisition of Morrisons, Britain's fourth biggest grocer, would
put jobs at risk, but it is unlikely that the government would
look to intervene, the Times added.
CD&R and Morrisons did respond to Reuters' requests for
Morrisons had rejected a proposed 5.52 billion pound ($7.62
billion) cash offer from CD&R on Saturday, saying it was far too
(Reporting by Ann Maria Shibu and Vishal Vivek in Bengaluru;
Editing by Edmund Blair and Amy Caren Daniel)