Montagu Drops Plans To Sell BSN Medical

FRANKFURT/LONDON (Reuters) – Montagu Private Equity has dropped plans to sell bandage maker BSN Medical as financial turmoil continues to jolt asset prices, a source familiar with the situation said on Tuesday.

The private equity company had received a couple of attractive offers but it was not in the best interest of investors to sell in choppy markets and it could well hold on to the asset for longer, the source said.

“The overall situation probably doesn’t make it the best time to sell the business now. There’s no need to sell this business,” the source said, requesting anonymity because of the confidentiality of the process.

Montagu declined to comment.

A source familiar with the situation told Reuters earlier this month that Montagu expected to sell BSN Medical for between 1.8-1.9 billion euros ($2.58-$2.73 billion) by the end of the first quarter 2009.

Banking sources told Reuters as late as Friday the sale may be concluded this year despite tough loan markets, given BSN’s strong performance.

Montagu bought Hamburg-based BSN, which makes medical dressings, casts and bandages, from Beiersdorf AG (BEIG.DE) and Smith & Nephew PLC (SN.L) for 1.03 billion euros in 2005.

By Alexander Huebner and Douwe Miedema
(Editing by Quentin Bryar)