Buyout speculation at Morrisons

BUYOUT speculation has mounted surrounding rumours that Morrisons could be taken private.

The Bradford supermarket giant’s shares jumped by 5pc following the news.

Reports have revealed that the founding family, which owns just under 10% , have approached  private equity firms including CVC Capital Partners and the Carlyle Group  to gauge their interest in a buyout, which would be valued at more than £7bn.

Earlier this year, Morrisons unveiled disappointing sales as it said the Christmas period had been “very challenging” with a slowdown in market growth.
In the six weeks to January 5 2014 total sales, excluding fuel, were down by 1.9% (3.3% including fuel) while like- for-like sales declined by 5.6% (7.1% including fuel).

The group said the difficult market conditions were intensified by the accelerating importance of the online and convenience channels, where Morrisons is currently under-represented.