AA requests more time for takeover talks as bidding stalls
THE AA has requested more time to continue talks with takeover suitors as the prospect of a bidding war stalled for the debt-laden breakdown firm.
A deadline for potential bidders to make an offer for the company has been extended by 28 days to Sept 29, the former FTSE 250 company announced yesterday.
Shares tumbled more than a tenth amid speculation that two of the three bidders have opened discussions about joining forces.
Warburg Pincus is holding preliminary discussions with a consortium led by Centerbridge Partners and TowerBrook Capital Partners, Sky News reported on Monday evening.
Meanwhile, speculation was growing that the third party, Platinum Equity, may not make a bid.
The AA said talks with all three parties “have continued to progress and their due diligence is ongoing”.
reported on Sunday that another supposedly interested party, US buy-out fund Apollo, is understood to be focusing on refinancing some of the AA’s almost £2.7bn debt pile as opposed to making a swoop for its shares.
The spectre of only one bid being lodged poured cold water on a late summer bidding war for the AA.
Jefferies analysts wrote: “With one bidder, limited value in the equity should be the central case.”
The AA shocked the City at the start of August by confirming reports of private equity interest.