Early signs good for Pessina Boots bid

BILLIONAIRE Stefano Pessina looks poised for an early breakthrough in his surprise £9.7 billion (€14.3bn) attempt to take Alliance Boots private.

The Sunday Times said Mr Pessina, who is the retail chain’s deputy chairman, and his private equity partner Kohlberg Kravis Roberts were likely to be granted access to the company’s books ahead of any possible takeover offer.

The report said that Nigel Rudd, Alliance Boots’ chairman, planned to hold a meeting of the company’s remaining independent directors today.

The developments come after Mr Pessina, who owns 15% of Alliance Boots, announced on Friday that he was behind the “highly conditional” takeover approach revealed by the retailer and drugs wholesaler earlier in the day.

Working alongside KKR, Mr Pessina told investors that his “friendly approach” to the Alliance Boots board depended on a period of due diligence and the support of the company’s directors.

His previous business Alliance UniChem only merged with Boots eight months ago, but Mr Pessina is said to have been disappointed with City reaction to the deal and believes the firm can grow quicker away from the public glare.

Friday’s statement spoke of plans to work with the existing management to create a “global leader in the healthcare services and beauty industries”.

The group has around 2,600 healthcare outlets in Britain and 400 pharmacies in Norway, the Netherlands, Thailand, Ireland and Italy.