Consortium leaves Boots race
One of the private equity consortiums bidding for Alliance Boots has said it is no longer interested in acquiring the health and beauty group.The announcement from Terra Firma, the Wellcome Trust and HBOS paves the way for Kohlberg Kravis Roberts (KKR) and Stefano Pessina to gain control of Alliance Boots.KKR and Mr Pessina, the firm's leading shareholder and deputy chairman, returned with a new offer or £11.1 billion today, almost five per cent more than the recommended bid it made on Friday.Hours after Alliance Boots' board recommended Friday's bid, it received a £10.8 billion takeover offer from Terra Firma, the Wellcome Trust and HBOS.But a statement to the London Stock Exchange this afternoon revealed that the consortium would not be pursuing its interest."Boots is a critically important national institution, and we are naturally disappointed not to be able to execute the bold vision we had for the company and its critical role in the provision of healthcare in the UK," the statement said."However, we are pleased that the shareholders of Alliance Boots have received a significantly higher price due to our interest, and we wish the company and all its stakeholders well under new ownership."The bid from KKR and Mr Pessina is 1,139p per share, the same price that its takeover vehicle AB Acquisitions bought almost 50 million shares at last night.If approved by shareholders, the deal would represent by far the largest acquisition of a UK group by a private equity fund.Alliance Boots is best known for its high street chemist outlets in Britain, but it also has a sizeable overseas pharmacy presence and wholesale supply business.Unions have already expressed concerns over workers' futures in light of the private equity bidding war.Brendan Barber, TUC general secretary, said: "Many such takeovers have hit staff and customers hard as the new owners seek to make the biggest and quickest possible buck at the expense of the long term."Staff and customers - including the NHS - need to know whether they plan to invest in Boots, consult with the workforce and honour the terms and conditions already enjoyed by Boots staff, or whether the costs of servicing a debt financed takeover will mean a worse deal."
Share this..
Related stories
Britons 'don't think they need' travel insurance, poll finds
More than 13 million Britons will go on holiday this summer without first taking out travel insurance, Sainsbury's Finance said today.According to the firm, one in five people believe that they "can't afford" the cover - while a further third feel that they "do not need" it.Surprisingly, youngsters were found to be showing a more responsible attitude to their summer holidays than their elders.Whil...
Read MoreIs the UK scrappage scheme a false economy?
As the UK scrappage scheme comes into play there is much information and misinformation in the marketplace regarding the benefits of a potential £2000 discount on a new car. However, the revelation that some new vehicles lose up to 65% of their value within the first three years has made many car owners think again.
Figures from stockbroker Brewin Dolphin show that one third of the...
FSA brings hope to Lehman collapse victims
The FSA (Financial Services Authority) has today issued a report into the collapse of Lehman Bros with a suggestion that many investors in the UK may have been misled or received inappropriate advice from the UK financial sector. After a period during which it seemed as though investors had been cut adrift by the regulator, there is now a real possibility that companies could be brought to account...
Read MoreBanks have a "responsibility" to students
Banks have a "responsibility" not to lend more money to students than they can afford to pay back, a spokesperson for HSBC has said. Many banks offer student accounts with overdraft facilities of around £1,500, student credit cards with a credit limit of about £1000 and low-rate loan facilities, and it is not unusual for students to graduate with debts of over £10,000.James Thorpe, a spokespers...
Read MoreAsda sold for £6.9 billion
While the headline may seem surprising there is more to this particular £6.9 billion deal than meets the eye. The deal is in fact part of a larger restructuring at US parent Wal-Mart which has in effect sold Asda to a company called Corinth Services Ltd for only £200 million more than its original purchase price back in 1999.
The new owner of Asda is actually part of the Wal-Mart...