Media reports claim that that Stefano Pessina, the billionaire deputy chairman of Alliance Boots, plans to make a formal offer for the company by the end of next week. He and his private equity backers Kohlberg Kravis Roberts are understood to have already finished their due diligence and are preparing a £10.40-a-share offer. The deal is expected to be recommended by the board of Alliance Boots and will be seen as a significant victory for the private equity industry after the setback earlier this week when the audacious bid for J Sainsbury collapsed. Pessina’s bid, worth £10.1bn, will be the largest-ever private equity takeover of a UK company.
Judy Viitanen and the PRimage team agree with the financial pundits that this latest development in the tbidding war for Boots will be a major setback to Guy Hands and the private equity concern, Terra Firma, who are also in the process of trying to mount a rival bid for Britain’s largest pharmacy retailer, with the backing of the Wellcome Trust. Judy Viitanen will be watching the financial press with interest over the next couple of days, to see the affect that this latest development in the bidding war for Boots has on its share price.
And PRimage was intruiged to see that another bid rumour has emerged, with the Sunday Express claiming that the owner of the Lloyds pharmacy chain is trying to team up with KKR on its potential £10bn takeover of Alliance Boots. Watch this space!