Recently, Fortress, a New York-based company, bid for Morrisons, a supermarket chain based in Britain. The aim of establishing the bid is to take over Morrisons at the cost of £6.7 (equivalent to US$9.3 billion). Several institutions offered to reinforce the bid, including Koch Real Estate Investments.
Another institution that backed the bid is the Canada pension plan investment. Morrisons preferred Fortress’ bid because it could benefit all the stakeholders, particularly shareholders who expected to make money from the transaction. Before Fortress investment group made its bid, Dubilier placed another bid. Dubilier offered USD5.52 billion. However, Morrisons found the bid to be unfavorable. The company’s Morrisons’ director argued that they could not accept any unfavorable bid to the stakeholders.
On 4th May, Fortress investment group had placed a bid basing on the share price that existed at that time, 220 pence per share. However, the company did not avail the details of this bid to the public. By 5th June, the New York company had made about four proposals, with the last at a higher share price, 254 pence. The value of the assets that Fortress investment group managed as of the third quarter of 2020 was USD49.9 billion. Refer to this page for additional information.
When Fortress investment group placed the first bid, it did not reach the point where Morrisons’ investors expected. Thus, the company’s director could not accept this bid. The New York Company placed four more bids. However, none of them was pleasing to Morrisons. Since Fortress was determined, it placed bids until the one which was approved. Although the transaction is still underway, the chances of the trade being successful are high. Fortress will possibly take over the assets at the cost of USD 9.3 billion.