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Morrisons shares surge 30% after takeover approach, amid jobs fears – business live

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Rolling coverage of the latest economic and financial news

8.15am BST

Shares in Wm Morrisons have surged by around 30% at the start of trading in London.

They’ve jumped to around 233p, up from 178.45p on Friday night.

8.08am BST

The stock market is open…and shares in Sainsbury’s, the UK’s second-largest supermarket chain, have jumped by over 4.5% to the top of the FTSE 100 leaderboard.

Market leader Tesco are close behind, up 2.5%, on speculation that other supermarket chains are now ‘in play’ for private equity firms…… as we wait for Morrisons to trade….

7.57am BST

The Times says the board of Morrisons will seek assurances from any buyer on the future of its workforce, manufacturing and pensions, as the Bradford-based supermarket group prepares for rival bid approaches.

Ashley Armstrong writes:

Morrisons’ board is understood to recognise that the retailer is now “in play”. However, as well as an attractive price it would want commitments and assurances from any bidder.

Morrisons board is understood to want job pledges in any takeover deal as private equity firm CD&R isn’t taking no for an answer just yet.. via ⁦@TimesBusinesshttps://t.co/A3OTqHA9d7

7.43am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

A shock takeover approach for Wm Morrison from private equity firm Clayton Dubilier & Rice has raised fears over possible job losses, and could prompt a bidding war for the UK’s fourth largest grocer.

“I suspect a [Morrisons] deal can be agreed at 250p-260p and after that the focus will increase on a potential breakup of Sainsbury and even Tesco, so it should be a lively day on the stock market.

I certainly wouldn’t want to be a hedge fund short of any of the big three.

“The whole industry is in play now. It’s not unrealistic to say that there could not be a single quoted British supermarket left in the foreseeable future.”

“Britain’s supermarkets stepped up to serve communities during the pandemic. Our supermarkets that play a role at the heart of our communities need owners that put the long-term interests of the business and its employees first.

“When Debenhams went bust we saw private equity firms walk away while employees lost their jobs and staff who have paid into the pension scheme were left out of pocket. Too often dodgy private equity firms load the companies with debt and leave while pocketing the dividends. This has to end.”

Related: Morrisons’ rejection of £5.5bn offer may spark bidding war for grocer

Related: FTSE 100 posts biggest fall in more than a month as US dollar surges

European Opening Calls:#FTSE 6953 -0.92%#DAX 15294 -1.00%#CAC 6518 -0.78%#AEX 712 -1.03%#MIB 24907 -1.23%#IBEX 8914 -1.29%#OMX 2226 -0.98%#STOXX 4040 -1.06%#IGOpeningCall

Federal Reserve official James Bullard became the proverbial bull in a China shop on Friday when he said that the Fed might need to raise rates in late 2022 instead of 2023. That sparked a run for the exit door for equity markets and commodities while the US Dollar powered higher.

The US yield curve continued to flatten as long-dated bond yields slumped, notably in the 20-year tenor.

Continue reading…Rolling coverage of the latest economic and financial newsLabour: Private equity takeovers put jobs at riskMorrisons’ rejection of £5.5bn offer may spark bidding war for grocerSaturday: Morrisons rejects £5.5bn takeover offer from private equity firm 8.15am BST Shares in Wm Morrisons have surged by around 30% at the start of trading in London.They’ve jumped to around 233p, up from 178.45p on Friday night. 8.08am BST The stock market is open…and shares in Sainsbury’s, the UK’s second-largest supermarket chain, have jumped by over 4.5% to the top of the FTSE 100 leaderboard.Market leader Tesco are close behind, up 2.5%, on speculation that other supermarket chains are now ‘in play’ for private equity firms…… as we wait for Morrisons to trade…. 7.57am BST The Times says the board of Morrisons will seek assurances from any buyer on the future of its workforce, manufacturing and pensions, as the Bradford-based supermarket group prepares for rival bid approaches. Ashley Armstrong writes:Morrisons’ board is understood to recognise that the retailer is now “in play”. However, as well as an attractive price it would want commitments and assurances from any bidder. Morrisons board is understood to want job pledges in any takeover deal as private equity firm CD&R isn’t taking no for an answer just yet.. via ⁦@TimesBusiness⁩https://t.co/A3OTqHA9d7 7.43am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.A shock takeover approach for Wm Morrison from private equity firm Clayton Dubilier & Rice has raised fears over possible job losses, and could prompt a bidding war for the UK’s fourth largest grocer.“I suspect a [Morrisons] deal can be agreed at 250p-260p and after that the focus will increase on a potential breakup of Sainsbury and even Tesco, so it should be a lively day on the stock market.I certainly wouldn’t want to be a hedge fund short of any of the big three. “The whole industry is in play now. It’s not unrealistic to say that there could not be a single quoted British supermarket left in the foreseeable future.” “Britain’s supermarkets stepped up to serve communities during the pandemic. Our supermarkets that play a role at the heart of our communities need owners that put the long-term interests of the business and its employees first.“When Debenhams went bust we saw private equity firms walk away while employees lost their jobs and staff who have paid into the pension scheme were left out of pocket. Too often dodgy private equity firms load the companies with debt and leave while pocketing the dividends. This has to end.” Related: Morrisons’ rejection of £5.5bn offer may spark bidding war for grocer Related: FTSE 100 posts biggest fall in more than a month as US dollar surges European Opening Calls:#FTSE 6953 -0.92%#DAX 15294 -1.00%#CAC 6518 -0.78%#AEX 712 -1.03%#MIB 24907 -1.23%#IBEX 8914 -1.29%#OMX 2226 -0.98%#STOXX 4040 -1.06%#IGOpeningCallFederal Reserve official James Bullard became the proverbial bull in a China shop on Friday when he said that the Fed might need to raise rates in late 2022 instead of 2023. That sparked a run for the exit door for equity markets and commodities while the US Dollar powered higher.The US yield curve continued to flatten as long-dated bond yields slumped, notably in the 20-year tenor. Continue reading…