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| Boots to consider £9.7bn approach | Boots to consider £9.7bn approach |
| (about 2 hours later) | |
| Alliance Boots management is meeting to decide whether to open up its books to the private equity group which has made an approach for the firm. | Alliance Boots management is meeting to decide whether to open up its books to the private equity group which has made an approach for the firm. |
| US-based KKR is behind the possible takeover bid which led to a significant rise in Boots' shares last week. | US-based KKR is behind the possible takeover bid which led to a significant rise in Boots' shares last week. |
| The "friendly approach" has the backing of Italian billionaire Stephano Pessina - who controls a 15% stake in Boots. | The "friendly approach" has the backing of Italian billionaire Stephano Pessina - who controls a 15% stake in Boots. |
| However, trade unions have warned that selling the group to a private equity firm could lead to "asset-stripping". | However, trade unions have warned that selling the group to a private equity firm could lead to "asset-stripping". |
| "Boots is in for the same punishment that other companies have had - asset stripping, looking at property portfolios, flogging them off and running away with bags of cash," said senior GMB organiser Paul Maloney. | "Boots is in for the same punishment that other companies have had - asset stripping, looking at property portfolios, flogging them off and running away with bags of cash," said senior GMB organiser Paul Maloney. |
| Bidding war? | Bidding war? |
| The approach, believed to be worth £10 per share, would value the Nottingham-based company at about £9.7bn. | The approach, believed to be worth £10 per share, would value the Nottingham-based company at about £9.7bn. |
| I certainly don't expect the Boots board ... to roll over immediately Robert PestonBBC business editor Read Robert Peston's blog Check Boots' share price | |
| Alliance Boots is best known in the UK for its 2,600 Boots the Chemist shops on the High Street. | Alliance Boots is best known in the UK for its 2,600 Boots the Chemist shops on the High Street. |
| But since its tie-up with Alliance UniChem last year it is now also a major drugs wholesaler, with a 40% market share, supplying more than 125,000 pharmacies, health centres and hospitals. | But since its tie-up with Alliance UniChem last year it is now also a major drugs wholesaler, with a 40% market share, supplying more than 125,000 pharmacies, health centres and hospitals. |
| BBC business editor Robert Peston said that the fact that one of Boots' key investors was working with KKR on the offer "massively increased the likelihood" of it going through. | BBC business editor Robert Peston said that the fact that one of Boots' key investors was working with KKR on the offer "massively increased the likelihood" of it going through. |
| Other analysts agreed - with many predicting the Alliance Boots board would be keen on other potential buyers coming forward, leading to a bidding war for the company. | Other analysts agreed - with many predicting the Alliance Boots board would be keen on other potential buyers coming forward, leading to a bidding war for the company. |
| KKR is the world's biggest private equity firm and was recently part of a consortium involved in the $45bn (£22.9bn) buyout of US utility TXU Energy - the world's biggest private equity deal. | KKR is the world's biggest private equity firm and was recently part of a consortium involved in the $45bn (£22.9bn) buyout of US utility TXU Energy - the world's biggest private equity deal. |
| Alliance Boots was formed last year by the £7bn merger of Boots, whose retail arm is based in Nottingham, and chemist group Alliance Unichem. | Alliance Boots was formed last year by the £7bn merger of Boots, whose retail arm is based in Nottingham, and chemist group Alliance Unichem. |
| Boots' shares rose 58.5 pence, or 6.29%, to 988.5p in early trade. | Boots' shares rose 58.5 pence, or 6.29%, to 988.5p in early trade. |