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Morrisons’ share price is holding steady as the company approaches an auction that will determine its future. The stock is currently trading at 296p, the highest level it has reached this year, and has risen by more than 76%, making it one of the top performers in the UK.
A takeover panel has decided that the private equity firms vying to acquire Morrisons will participate in an auction on Saturday. The regulator has announced that there will be five rounds of bidding since neither Fortress nor Clayton, Dubilier & Rice has made a final offer.
The board will then decide on the final offer by October 5, with approval needed from three-quarters of the company’s shareholders.
It is possible that the final bid may be lower than the current trading price of 296p. CD&R had previously submitted a bid of around 285p. Additionally, the company recently secured an agreement with Morrisons’ pension trustees, pledging not to sell the company’s properties.
Given this situation, conducting a technical analysis of Morrisons’ share price is challenging, as the outcome of the auction will heavily influence its direction. However, the stock may continue to rise, with bulls potentially targeting the key psychological level of 300p ahead of the auction.
For current investors, the potential for significant gains at this level is relatively low, but the risk of a major decline is also minimal.