This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2015/sep/16/worldpay-owners-seek-higher-bid-from-ingenico-to-avert-flotation

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Worldpay owners seek higher bid from Ingenico to avert flotation Worldpay flotation back on track after Ingenico warning
(about 7 hours later)
London’s biggest planned flotation of the year, the share sale of Worldpay, is on the verge of being called off. The planned £6bn flotation of Worldpay is back on track after one of its private equity backers warned of the risks of backing a bid from French rival Ingenico.
According to sources, the owners are set to sell the British payment services company to French rival Ingenico if it increases its offer to £6.5bn. Bain Capital, one of the two main backers of the British payment processing company, is becoming increasingly nervous about agreeing to a deal with Ingenico. It believes the risks attached to such a transaction are high, given that the French group would be doubling its market capitalisation to do the deal. It would also need shareholder approval.
Bain Capital and Advent, the private equity owners of Worldpay, were scheduled to announce details of a £6bn share issue on Monday but postponed the announcement last Friday as Ingenico hovered. The French firm has been told to pay £6.5bn and the company will be theirs. “The Ingenico share price is under pressure as investors worry about whether it can pay a sufficiently high price and still make the deal work,” said a source close to Bain. Ingenico’s share price has fallen from €125 to €98 over the past month as its interest in a deal has been made known.
Sir Mike Rake, the BT chairman, left the board of Barclays, where he was instrumental in the ousting of Antony Jenkins, in order to steer Worldpay to the public markets. This time last year he chaired the roadside assistance group the RAC as it prepared for a flotation but left when the Singapore wealth fund GIC bought a stake instead. One of the bank advisers advising on the deal has also argued that a stock market flotation offers the group greater certainty, despite the risks of higher interest rates.
One source said that Rake had played a key role in the negotiations at Worldpay and did not have any personal preference over a bid or a flotation (though he would keep his chairman’s role in the event of a float). Bain Capital and Advent, the private equity owners of Worldpay, were scheduled to announce details of the £6bn share issue this week but postponed the announcement last Friday as Ingenico showed signs of wanting to increase its bid.
Sir Mike Rake, the Worldpay chairman, left the board of Barclays bank in order to steer Worldpay to the public markets. This time last year he chaired roadside assistance group, the RAC, as it prepared for a flotation but left when the Singapore wealth fund GIC bought a stake instead.
Some of those advising Worldpay on a flotation have cautioned against the current instability of the markets and the possibility of them being further shaken by a rise in US interest rates.Some of those advising Worldpay on a flotation have cautioned against the current instability of the markets and the possibility of them being further shaken by a rise in US interest rates.
However, they also know that agreeing a deal with Ingenico is not without risk. The French group would more than double its market capitalisation of €6.2bn (£4.5bn) by making a bid that would require shareholder approval and considerable external financing. However, they also know that agreeing a deal with Ingenico is not without considerable risk.
Investment bankers were hoping that a £6bn flotation would help kickstart the new issues market in London, which has been relatively quiet since the election and the summer months, also troubled by the turmoil on the China markets. Investment bankers are hoping that a £6bn flotation would help kickstart the new issues market in London, which has been relatively quiet since the election and the summer months, also troubled by the turmoil on the China markets.
So far there have been 53 UK issues this year, compared with 93 at the same time last year, according to Dealogic. Some of the large flotations this year have included DFS Furniture in February, which had a valuation of £585m and Autotrader, which was valued at £2.35bn. So far there have been 53 UK issues this year, compared with 93 at the same time last year, according to Dealogic. Some of the large flotations this year have included DFS Furniture in February, which had a valuation of £585m, and Autotrader, which was valued at £2.35bn.