Bidding war breaks out for Boots
Microsoft office 2010 product keyTerra Firma said that there was no guarantee its 11.15 per share proposal which is conditional on seeing Boots' books would become a definite offer.
Meanwhile KKR's 10.90 per share move is a firm bid.
A spokesman for KKR told the BBC that "we are fully funded and ready to go"
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"We have done our due diligence and in both time value of money and clear strategy for growth we believe our position to be superior to the uncertainties of the other camp
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Customers
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Alliance Boots is best known in the UK for its 2,600 Boots the Chemist shops on the High Street
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The group
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BBC business editor Robert Peston said that the offer from KKR and Mr Pessina was more than had been expected.
In endorsing the KKR bid, Alliance Boots chairman
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"The formation last year of Alliance Boots created a hugely valuable business and this offer reflects that
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KKR first made an approach in early March, but was rebuffed because the offer price was too low.
But the fact that it had the backing of Mr Pessina, Boots' billionaire deputy chairman who already owns 15% of the shares, made it likely the deal would eventually be accepted by the board.
It is thought that Mr Pessina wants to take Boots private to enable it to grow away from the public spotlight.
He said that he and KKR consortium were "committed to accelerating the development of Alliance Boots in order to meet the challenges and opportunities that we face and to build a successful global pharmacyled healthcare and beauty group."
The offer is 33.7% higher than the price of Boots shares the day before the first approach was made.
A takeover would reignite the debate about whether ownership by private equity was good or bad for British companies
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"Unions are bound to complain that there'll be job insecurity for Boots' staff and fat profits for KKR.
"Whereas Stefano Pessina will probably argue that Alliance Boots's prospect for growth would be better as a private company sheltered from the interference of shareholders and the media."
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