Morrisons shares have reached record levels, as the supermarket chain prepares to release details of its new strategic plan on Thursday and the private-equity speculation bandwagon circles.
According to Reuters, City insiders believe that un-named private equity groups are looking at the UK's fourth largest grocery chain.
On Friday, Morrisons stock closed up 4.2 per cent at 320.5 pence per share.
"You could apply a similar argument to Morrisons as to Sainsbury’s. Morrisons is at least a natural fit to take private as Sainsbury’s," said a senior investment banker, speaking to Reuters. Morrisons has refused to comment.
In the wake of the private-equity approach for Sainsbury’s, analysts are revaluing the retail sector on its property assets. JP Morgan analyst Alastair Johnston, for instance, said Morrison shares are worth 20 per cent more if the market considers its £8 billion of property as well as its retail operations.
Chief executive Marc Bolland's five-year strategy review is eagerly awaited, as it is his first since joining the company last September. His presentation will feature the key areas of brand development, distribution infrastructure and internal technology systems at the strategy review.
Bolland is predicted to report pre-tax profit of £318 million, as opposed to just £53m in the previous financial year and more rumour suggest he may attempt to pre-empt a bid for the company by announcing a property sale.
