“Morrisons has been quick to quash speculation over this bid, one that valued the business at £5.5bn. At the time of the bid, this would have represented a slight premium on Morrisons’ market capitalisation, although share prices have shot up on the news of a potential takeover.

It is easy to see why a business like Morrisons would be attractive to private equity. It has a strong property portfolio underlying its valuation and at a time when many investments are prone to extreme fluctuation – UK grocery, and a consistent performer within it, may look a safe bet over the long term.

From a Morrisons point of view the difficulty under such ownership is does the business become risk adverse, a critical failing in the current market, as the private equity backing looks to protect its exposure? With Sir Terry Leahy as an advisor, someone who has worked alongside both Andrew Higginson and David Potts, and previous investment with B&M CD&R are no strangers to UK retail. Therefore there would be hope that they would understand what is needed to allow Morrisons to continue to perform well.

Irrespective of whether an improved bid comes, this takeover speculation will have other funds and businesses running the slide rule over Morrisons – a testament to the fantastic work the current leadership has done to bring the business back on track.”