Potential buyers circle 3i

Private equity firm 3i is being circled by a number of potential buyers after a slowdown in raising money to fund investments, it was reported today.

Among those thought to be looking at a £5b €7.5bn) takeover are American banks Goldman Sachs and Credit Suisse First Boston plus US venture capitalists Kohlberg Kravis Roberts and Blackstone Group.

Motivation for a takeover would be the opportunity to break up 3i and sell its assets for instant gains, the Sunday Express said.

There are also concerns over 3i’s ability to find a successor to chief executive Brian Larcombe who has announced his decision to retire in July.

3i – Europe’s largest publicly quoted private equity firm – is due to announce its full-year results on Thursday and release details of its latest fund to invest in buy-outs on the continent.

It is considered vulnerable to a takeover because its share price has fallen to 602p from more than 1700p four years ago, although it has risen by nearly 50% over the past 12 months.