Morrison Supermarkets Stock Up On Deal To Be Bought By Fortress Investment; Apollo Mulls Offer

(RTTNews) - Shares of Wm Morrison Supermarkets plc (MRW.L) were gaining around 11 percent in the early morning trading in London after the company reached agreement to be acquired by Fortress Investment Group (UK) Ltd. for 254 pence per share in cash and dividend. The offer values Morrisons at approximately 6.3 billion pounds on a fully diluted basis.

Meanwhile, Apollo Global Management, Inc., responding to recent press speculation, confirmed that it is, on behalf of certain investment funds managed by it, in the preliminary stages of evaluating a possible offer for Morrisons.

Morrisons in late June rejected an unsolicited highly conditional non-binding cash offer of 230 pence per share from Clayton, Dubilier & Rice Funds XI or CD&R saying it significantly undervalues the firm.

In the latest deal, the boards of directors of Morrisons and Oppidum Bidco Limited, owned by funds managed by affiliates of Fortress Investment, reached agreement on the terms of a recommended all cash offer.

The per share price comprises 252 pence in cash and a 2 pence cash dividend. The offer value represents a premium of approximately 42 percent to the Closing Price of 178 pence per Morrisons Share on June 18, being the last Business Day before the commencement of the Offer Period.

In London, WM Morrison shares were trading at 267.05 pence, up 11.36 percent.