The Chairman of Wm Morrison Supermarkets has denied reports that the rejected takeover offer from US-based buyout firm Clayton Dubilier & Rice had caused some boardroom squabbles.
According to Chairman Andy Higginson, the reports had no basis, and the board had acted in the best interest of stakeholders when it rejected CD&R’s offer and picked that of a consortium led by Fortress Group in its place.
With the shareholders’ vote to ratify the Fortress deal yet to occur, Clayton Dubilier & Rice is said to be preparing an improved takeover offer for the British supermarket chain.
Morrisons’ stock price is down 0.56% as of writing.
Technical Levels to Watch
After soaring to the three-year highs near 270.2 (24 August/12 September 2018 highs), WM Morrisons’ stock price has been rejected at that price level. However, selling pressure remains light, and we could see a potential retest of that level. A subsequent breakout sends Morrisons stock price towards 8-year highs at 287.6, with 299.9 (23 August/11 September 2013 highs) serving as an additional target to the north.
On the other hand, if the correction picks up steam, we could see 257.3 coming into the picture as the initial target, with 249.9 and 243.9 (25 May/30 October 2018 lows) serving as additional downside targets.