CD&R pushes for $8.7b Morrison race

Bloomberg

Clayton Dubilier & Rice (CD&R) is pushing ahead with its pursuit of British grocery chain Wm Morrison Supermarkets Plc, as it seeks to beat an agreed 6.3 billion-pound ($8.7 billion) bid from Fortress Investment Group, people with knowledge of the matter said.
Morrison has granted CD&R access to confidential information as it works on an improved offer, the people said, asking not to be identified because the information is private. In addition to a potential increase in its bid, the buyout firm is considering what additional commitments it can make to win over Morrison’s board, the people said.
The proposal from Fortress came with a series of pledges on maintaining salaries, honoring supplier relationships and holding onto Morrison’s extensive property portfolio. Those assets are seen as particularly valuable to a private equity acquirer, which could quickly raise cash by selling the real estate and leasing it back to Morrison, though the practice is sometimes controversial.
CD&R has plenty of time to consider its options, as the deadline for it to submit a new offer isn’t until early August, the people said.