A bidding war for Alliance Boots broke out today after two private equity groups went head to head in a takeover tussle to snap up the health and beauty giant.

Health and beauty giant Alliance Boots today backed a £10.6bn (€15.6bn) takeover by its deputy chairman Stefano Pessina and private equity group Kohlberg Kravis Roberts.

The private equity group circling supermarket chain Sainsbury’s reportedly offered the group’s shareholders an equity stake sweetener in an attempt to see its rejected £9.7bn (€14.2bn) takeover attempt succeed, according to reports today.

The UK's Office of Fair Trading (OFT) today launched an investigation into the impact on the cost of medicines to patients and the NHS after Pfizer’s controversial deal to sell drugs in the UK solely through one wholesaler.

Alliance Boots, the retail and wholesale drug group being eyed for takeover by private equity bidders, announced a raft of changes today that will see hundreds of jobs cut and its pharmacies rebranded in a £65m (€95.6m) million makeover.

Alliance Boots shares were trading above £10 today as investors suspected that bidder Stefano Pessina will need to increase his proposed offer price.

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

A strong trading update from Associated British Foods along with positive corporate results from Persimmon and Old Mutual lifted the London market into positive territory today.

Shares in Sainsbury’s staged a fresh surge today amid ongoing speculation about takeover interest in the supermarket chain.

Top retail chains Argos and Homebase could be the subject of a fresh £4bn (€6bn) takeover bid, it was reported today.

The owner of retail chains Argos and Homebase said today it had spurned expressions of interest in both of its operating divisions.

A trio of media heavyweights including former BBC director general Greg Dyke may launch a £6bn (€8.57bn) takeover bid for ITV, it was reported today.

A DRAWN-OUT battle for control of Warner Chilcott looked less likely yesterday as one of the three bidders for the Northern drug firm dropped out of the race to join forces with the frontrunner.

British advertising giant WPP today emerged as the winning bidder in the hotly-contested auction of US-based rival Grey Global.

The potential sale of UK financial services-to-holidays group Saga has attracted at least 10 bids of more than £1bn (€1.5bn), it was reported today.

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.

The board of Eircom has written to Denis O'Brien and Tony O'Reilly to request final pitches for its fixed line business.