Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
The big corporate story of the weekend is news that the directors of WM Morrison [LON:MRW] are recommending that shareholders accept a higher offer for the company than the bid made last month. The revised offer is for 252p per share plus a 2p special dividend, valuing the company at £6.3b or a multiple of 18.5 times on EPS. Whilst this is around 10% better than the last offer, there is a risk that further interested parties could be flushed out by the approach. Shares should jump at the open.
McColl’s Retail Group
There’s an interesting note out from McColl’s Retail Group [LON:MCLS] who use Morrisons as a wholesale supplier and operate a number of Morrison branded convenience stores across the country. The company notes that back in 2021 the contracts here were extended out to January 2027, which offers shareholders some reassurance that the status quo can be maintained. That said, speculation as to what happens next is likely to creep in.
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AIM listed Restore [LON:RST], the UK’s leading provider of integrated information and data management services, secure technology recycling, and commercial relocation solutions, has published a trading update ahead of interim results due at the end of the month. Q2 performance has come in ahead of management expectations and on current estimates the business is working on an annualised run rate of £250m, up for £183m in 2020 and £216m in 2019. In light of this, dividend payments are to be resumed, with the level included with the results.
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