According to The Times, CD&R is said to be working on a financial package with JP Morgan, Goldman Sachs and BNP Paribas.
CD&R failed with a £5.5bn bid last month which valued Morrisons at 230 pence per share for the entire share capital of the group.
However, following a valuation with the supermarket chain’s financial adviser, Rothschild and Co, it was “unanimously concluded” that the deal “significantly undervalued” the Morrisons brand. In turn the supermarket’s board confirmed that it had “rejected the conditional proposal” on 17 June 2021.
CD&R has since seen a rival bid led by fellow American private equity firm Fortress Investment Group accepted by the grocer’s board which is now awaiting shareholder approval.
The news comes a day after it was revealed that Apollo Asset Management will no longer push ahead with a solo takeover offer for UK supermarket Morrisons, instead undertaking discussions to join a rival bid.
In a statement the company said it is in “preliminary discussions” to join forces with the consortium headed by Fortress and as such no longer intends“to make an offer for Morrisons other than as part of the Fortress offer”.
It said: “Apollo Global Management confirms that it is in the preliminary stages of discussions with Fortress Investment Group, LLC regarding the recommended offer for Morrisons by Oppidum Bidco Limited which may result in funds managed or advised by Apollo forming part of the investment group led by Fortress for the purposes of the Fortress offer.”