Terra Firma drops Boots bid plan
A consortium led by private equity firm Terra Firma has decided to withdraw its interest in a takeover offer for Alliance Boots. The move looks set to leave the way clear for private equity firm Kohlberg Kravis Roberts (KKR) and Boots' deputy boss Stefano Pessina to buy the firm.
On Monday evening, KKR upped its offer for the health and beauty retailer to £11.1bn ($22.2bn). If the deal goes ahead, it will be the UK's biggest private equity buyout.
The Terra Firma consortium - which also includes medical charity the Wellcome Trust and banking group HBOS - said it was "disappointed" not to be able to go ahead with its £10.8bn bid.
"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," it said in a statement.
News of the decision came after the group held a meeting with the Boots board.
Frontier (London) advised Terra Firma on aspects of the bid.
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