Morrisons share price surged to September 2018 highs after a third company interested in buying the supermarket chain became public.
Morrisons shares jumped 11.04% on Monday after Apollo Global Management said it could mount a counterbid against the $8.7billion takeover bid by Fortress-Led Group, which has already been agreed to by Morrisons. Apollo is yet to approach Morrisons with its offer formally.
Last week, the all-cash takeover by a consortium featuring Fortress Investment, Koch Real Estate Investments and the Canada Pension Plan Investment Board at 2.54 pounds per share and a 0.02 pounds dividend was agreed to by the board of Morrisons. The deal has to be ratified by 75% of the shareholders.
Technical Outlook for Morrisons
The weekly chart shows that Morrisons’ share price surged this Monday via a bullish gap, hitting resistance at the 270.2 price mark. If the price breaks this level, then 287.6 (28 October 2013 high) becomes the next target. The 27 August 2013 high at 299.9 forms an additional upside target if the price advance continues.
On the flip side, failure to breach the 270.2 resistance allows for a potential pullback which may target 257.3, with 249.9 and 243.9 serving as additional targets to the south.