As Morrisons auction looms, pension deals ought to have been nailed down | Nils Pratley
CD&R stepped up to the mark two weeks ago, but Fortress’s foot-dragging looks poor ahead of Saturday
The structure for Saturday’s auction for Morrisons is technically flawless, as argued in this column on Wednesday, but there is still a problem: only one bidder has reached agreement with the trustees of the supermarket group’s pension fund.
The auction can happen regardless, but the pension position is unsatisfactory, to put it mildly. Morrisons will be loaded with debt whichever bidder wins, so ensuring the schemes can complete their journey to buyout by a big insurance firm, which is the trustees’ long-term plan, ought to be a top priority.Continue reading...