A cross-Atlantic bidding war erupted on Friday for Europe's biggest pharmacy chain, Alliance Boots, as US and British private equity groups launched rival cash bids approaching £11.
A takeover backed by either Terra Firma or Kohlberg Kravis Roberts (KKR) would represent Europe's biggest buyout by a private equity firm.
A consortium headed by British group Terra Firma tabled a bid worth £10.78 billion (€15.87 billion) for British company Alliance Boots.
The offer trumped an improved bid by US private equity rival KKR that the Alliance Boots board had accepted earlier Friday.
Despite Terra Firma's higher bid, Alliance Boots said it would continue to recommend that its shareholders accept the KKR proposal. However it left the door open to a possible acceptance of the Terra offer.
'Having reviewed the indicative proposal (from Terra) the board of Alliance Boots has determined that it will continue to provide the consortium with high level due diligence including access to senior management,' a statement said.
KKR, which is joined in its takeover by the executive deputy chairman of Alliance Boots, Stefano Pessina, offered £10.6 billion.
Pessina owns 15% of Alliance Boots, which was created last year by the British merger of pharmacy chain Alliance UniChem and health and beauty retailer Boots.
A takeover would also make the newly-formed Alliance Boots the first company to fall into private hands while being listed on London's prestigious FTSE 100 share index.
