Supermarket chain Morrisons has confirmed it is in discussions with the stock market鈥檚 Takeover Panel to launch an auction process for the chain.
The Bradford -based company hopes to bring to an end the three-month battle for the business between two private equity firms, Clayton, Dubilier & Rice (CD&R) and Fortress.
Morrisons said that, on the basis that neither bidder has declared their offer final, 鈥渟uch that either offer may be further increased or otherwise revised, a competitive situation continues to exist鈥.
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As a result, the company has started talking with the Takeover Panel and the bidders 鈥渋n order to begin discussions around an orderly framework for the resolution of this competitive situation鈥.
An announcement by the Takeover Panel is expected shortly, with a date for later this month expected to be set when any bidders must make their offers final.
Shareholders will vote on the deal in or around the week of October 18, the supermarket added.
Bosses continued to stress that any bidder must uphold the group鈥檚 values.
The supermarket said: 鈥淚n addition to the financial terms of any offer, the Morrisons board continues to place very significant emphasis on the wider responsibilities of ownership of Morrisons.
鈥淭hese responsibilities include a recognition of the importance to the Morrisons business of all stakeholders, including colleagues, customers, pension trustees and suppliers as well as the distinct heritage and history of Morrisons and the legacy of Sir Ken Morrison.鈥
The takeover process started in June with CD&R making a 拢5.5 billion bid for the business.
This was followed by a bid of 拢6.7 billion by Fortress and a counter bid of 拢7 billion from CD&R.
Fortress said it 鈥渃ontinues to consider its options鈥 but has not made a further announcement.
Morrisons shareholders appear to believe a new bid could be on its way, with shares trading above 290p despite CD&R鈥檚 offer standing at 285p-a-share.
