Private equity firm TPG has been dropped from the auction for a majority stake in British grocer Iceland Foods because its bid was too low, reports Reuters. Other bidders, private equity firms Bain and BC Partners, as well as grocer Asda and Wm Morrison, are through to a second round of bidding, with offers expected in around the end of January, writes Reuters.
(Reuters) – Private equity firm TPG has been dropped from the auction for a majority stake in British grocer Iceland Foods because its bid was too low, a person close to the process said on Monday.
Other bidders — private equity firms Bain and BC Partners, as well as grocer Asda and Wm Morrison — are through to a second round of bidding, with offers expected in around the end of January, the person said.
Failed Icelandic banks Landsbanki and Glitnir are selling a combined 77 percent stake in Iceland Foods and hoping to achieve a price that values the whole business at 1.5 billion pounds ($2.36 billion) or more.
Founder and chief executive Malcom Walker, who together with other managers owns the remaining 23 percent stake, is also working on a bid.
Under a shareholder agreement, he will win the auction if he matches the highest bid. TPG declined to comment.
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