London — Wm Morrison Supermarkets rejected as undervalued an unsolicited proposal from US buyout firm Clayton Dubilier & Rice (CD&R) that valued the UK grocery chain at about $5.5bn.

Morrison received a proposed cash offer at 230p a share on June 14 and rejected it three days later after discussions with its adviser Rothschild & Co, the company said in a statement on Saturday. The proposal is about 29% more than Friday’s close in London, a hefty premium for investors nursing a 6.3% decline over the past 12 months...

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