AA takeover stalls as suitors step away from talks with troubled breakdown company
TWO suitors eyeing a takeover of debtladen breakdown company the AA have pulled out of the race three weeks after a deadline for bids was extended, sending shares plunging.
Platinum Equity and Centerbridge Partners both said they have walked away from talks with the AA’s board, in a move that could potentially leave just one consortium bidding for the embattled former FTSE 250 business.
Shares fell 17pc to 28p, valuing the company at just under £180m. The stock has fallen 93pc from its peak in 2015.
The AA stunned the City at the start of August by confirming reports of private equity interest, saying it was in talks with three potential buyers.
Last month it emerged that one bidder, Warburg Pincus, was speaking to an allegedly rival consortium led by
Centerbridge and Towerbrook Capital Partners about combining forces rather than launching rival offers. The Daily Telegraph reported last month that another supposedly interested party, US buyout fund Apollo, was understood to be focused on refinancing some of the AA’s near £2.7bn debt pile as opposed to making a swoop for its shares.
Finding a buyer has proven more difficult than first hoped for the company, and a deadline set by the Takeover Panel earlier this month passed without any bids arriving. This forced AA to ask for an extension, with the new deadline set at Sept 29.