Drop the price or we’re out: Issa-TDR consortium considers backing out of Boots bid

THE WHAT? A consortium of TDR Capital and the Issa brothers is considering quitting the race to acquire WBA’s Boots chain after failing to reach an agreement on price, according to a report published by Bloomberg quoting sources familiar with the matter.

THE DETAILS Walgreens Boots Alliance is seeking a valuation of £7 billion for the UK pharmacy chain but those in the running have the price pegged at closer to £5 billion, Bloomberg said. Other parties in the running include a consortium of Reliance and Apollo, who are said to be yet to submit a second-round bid. Sycamore Partners has also been linked to the auction.

THE WHY? With credit markets fragile and consumer confidence shaky, WBA is struggling to strike a deal for the high-street stalwart. The TDR-Issa pairing is presumably hoping to take advantage of the situation to secure a bargain.