Private equity firms are circling UK supermarket chain Wm Morrison Supermarkets, and their shares skyrocketed on Monday.
Wm Morrison Supermarkets
rose 11% to 267p after Apollo Global Management announced it was considering a counter offer for the UK chain after an agreed 6.3 billion Clayton offer, Dubilier & Rice previously made an offer for the number four supermarket chain of the Given in the country.
The competing bidders have until July 17th to submit a bid.
The agreed offer from the Fortress-led group values Morrison at 7.9 times the ratio of enterprise value to expected earnings before interest, taxes, depreciation and amortization for 2022, according to Bank of America, compared to the European industry average of 7.3.
Bank of America analysts noted the presence of Koch Real Estate in the Fortress offering, which for them indicates a possible sale-and-leaseback of Morrison properties.
Rival UK grocery retailers including Marks & Spencer
and J. Sainsbury
The travel sector preceded a speech by UK Prime Minister Boris Johnson, expected to announce the lifting of mandatory face mask and social distancing rules in mid-July. Airlines International Airlines Group
The FTSE 100
up 0.5% on a quiet trading day with US markets that closed on Independence Day.