Shares of British retail group Morrisons shot up more than 30% on Monday, after the group said it had rejected a bid by U.S. private-equity firm Clayton, Dubilier & Rice that would value the company’s equity at £5.52 billion ($7.6 billion).
The outlook: Morrisons’ management team does not seem hostile in principle to a sale. But U.K. retailers’ prospects have been boosted by the COVID-19 pandemic. Morrisons also has a sizeable food-manufacturing business, and owns most of its stores. That leaves some margin for a deal sweetener.