12 February 2014 by HCM
A month ago, there was a first alert on MRWLN (Wm. Morrisson Supermarkets Plc) when Elliott Associates built a stake in the company. Rumours that a leveraging of the company via a spin-off of their property assets was in the cards were flying around back then. The 5 year CDS never recovered completely and it only participate reluctantly in the recent rally. Today, it took a second leg wider when it was said that the founding family had approached private equity funds such as CVC Capital and Carlyle. Analysts are divided on the feasibility of what would be a $13bln deal, but the market decided it was better safe than sorry and the name was marked 20bps wider (i.e. 1% in cash price) on the day.