Why cash-rich private equity firms scent bargains in the UK

Analysis: low valuations have made British firms easy prey and Morrisons will not be the only target

Takeover bids from private equity houses have become so common this year that even investment bankers are starting to sound weary. Another week, another private equity offer," is how analysts at Canaccord Genuity reacted to the weekend's news of an approach for Morrisons.

The supermarket has rejected the 5.5bn bid from US buyout firm Clayton, Dubilier & Rice, but investors expect a bidding war. It will not be the only one, as private equity outfits sitting on huge piles of cash look to the UK.