Boots rejects KKR's £9.7 billion offer as being low
Our Corporate Bureau
13 March 2007
The management of Alliance Boots, which met to consider the offer, has concluded that the offer price of £10 per share did not reflect the value of the firm that has over 3,000 retail outlets with 2,600 in the UK alone and also a major drugs wholesale operation, with a 40 per cent market share.
The board said that the offer did not reflect the fundamental value of the company or the attractive prospects, opportunities and synergies available.
Described as a "friendly approach", the KKR offer has the backing of Italian billionaire Stephano Pessina, who owns a 15 per cent stake in Boots.
Commentators predict the Alliance Boots board would be keen on potential buyers putting in counter offers, leading to a bidding war for the company.