Alliance Boots yesterday dismissed claims that Terra Firma, the private equity firm run by Guy Hands, had been granted only limited access to its books as he seeks to counter a £10 billion offer for the group from Kohlberg Kravis Roberts (KKR).

KKR and Stefano Pessina, the deputy executive chairman of Alliance Boots and a 15 per cent shareholder, are expected to launch a formal bid approach for the company at £10.40 per share within days.

Sources close to Terra Firma claim that KKR is at an unfair advantage because it has had greater access to the company’s accounts. A spokesman for Alliance Boots said: “We cannot legally not give them different information. They are at no disadvantage in terms of access.”

KKR was granted access to the accounts on March 30.

Terra Firma signed a confidentiality agreement on Friday allowing it to obtain copies of the accounts the next day.

Since then, Mr Hands’s group, which has teamed up with the medical research charity the Wellcome Trust, has been racing to complete its due diligence work because KKR’s plans are much more advanced. Terra Firma is being advised by Lehman Brothers and Gleacher Shacklock, the corporate finance boutique. Up to ten banks are believed to have been lined up to provide funding for a possible bid.

The KKR group is viewed as having a natural advantage because of Mr Pessina’s knowledge of Alliance Boots. He has been involved with the Alliance side of the group, which merged with Boots last year, since 1977. He remains a salaried board member but, by mutual consent, has not visited the group’s head office since March 9.

Yesterday, a spokesman for Mr Pessina reiterated his commitment to the KKR bid after speculation that he might be willing to sell his shares to a rival bidder at £10.70 per share.

3,000
Number of Boots retail outlets in Europe and Asia

Source: Alliance Boots

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