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Morrisons’ share price surged to its highest level since September 2018 after news surfaced about a third company showing interest in acquiring the supermarket chain.
Morrisons shares jumped 11.04% on Monday following the announcement that Apollo Global Management is considering a counterbid against the $8.7 billion takeover offer from the Fortress-led group, which has already been accepted by Morrisons. However, Apollo has not yet formally approached Morrisons with its offer.
Last week, Morrisons’ board agreed to an all-cash takeover offer from a consortium that includes Fortress Investment, Koch Real Estate Investments, and the Canada Pension Plan Investment Board. The offer is priced at £2.54 per share, with an additional £0.02 dividend. The deal still needs approval from 75% of the shareholders.
On the weekly chart, Morrisons’ share price surged on Monday, creating a bullish gap and hitting resistance at the 270.2 price level. If the price breaks through this level, the next target could be 287.6, the high from October 28, 2013. If the upward momentum continues, the August 27, 2013 high at 299.9 could be the following target.
On the downside, if the 270.2 resistance level holds, a potential pullback could target 257.3, with further support at 249.9 and 243.9.