Morrisons posted one of the biggest stock price increases in the FTSE 350 today as a takeover battle for the supermarket group continues.
The company’s board has recommended shareholders accept a 285p-per-share offer from Clayton, Dubilier & Rice, valuing it at £7bn.
The offer marks the latest development in a takeover battle for Morrisons – its board had earlier recommended a deal at 272p a share from Fortress Investment Group.
Fortress has responded to the CD&R offer by saying it is “considering its options” and urging Morrisons shareholders to take no action.
Shareholders appear to think an even higher offer will come to the table – Morrisons’ shares ended the day at 291p, up by 4.2%.
The biggest rise in the FTSE 350 came from Marks & Spencer, which said in a trading update today that it has seen an “encouraging performance” across its business as Covid-19 restrictions have lifted. Its stock was up by 14% at 162.8p.
Among the larger REIT’s, the day’s winner was LXi, which announced this morning that it has spent a combined £80m on a life sciences campus in York and Scottish Television’s Glasgow studios. Its shares were up 3.1% at 147.8p.
The FTSE 100 ended the day at 7,087, a gain of 0.4%. The FTSE 250 stood at 23,750, up 0.6%.
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