Supermarket group, Morrisons has accepted an improved takeover bid of £7bn from Clayton, Dubilier & Rice (CD&R).

Morrisons shares opened up on Friday which is seen as a signal that investors should expect more bids.

The supermarket had in July turned down an offer worth £5.5bn from CD&R, stating that the offer undervalues the business.

Morrisons has almost 500 shops and more than 110,000 staff and has been at the centre of a takeover battle for weeks.

Fortress urged Morrisons’ shareholders to “take no action” on CD&R’s agreed bid as they will require their approval at a meeting in October but Morrisons’ board unanimously accepted the new offer.

Morrisons chairman, Andrew Higginson stated that the offer “represents good value for shareholders while at the same time protecting the fundamental character of Morrisons for all stakeholders”.

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