Permira abandons De Vere pursuit

Permira, a large-cap buyout firm, has given up its pursuit of De Vere Group, after Richard Balfour-Lynn’s Alternative Hotel Group had a third offer accepted by the UK hotel and leisure chain’s board yesterday.
 
Late last week, Permira called for shareholders in De Vere Group to “take no action” following a revised 850 pence per share offer.
 
Despite no counterbid from Permira, Alternative Hotel Group raised its offer to 875 pence per share, valuing the business at approximately €767 million ($968 million).
 
Permira said in a statement late yesterday: “After considering its options, Permira has decided that it does not intend to make a formal offer for De Vere.” However, the statement added that Permira “reserves the right to announce an offer or a possible offer for De Vere” if the Alternative Hotel Group bid is withdrawn or lapses.
 
At 10.30am GMT today, De Vere’s shares were trading at 863 pence, the same price as at close yesterday.
 
This is the second time this year that a takeover attempt by Permira has been rebuffed, following the firm’s abandonment of its pursuit of UK music and entertainment retailer HMV in March
 
Yesterday, Permira announced a first close on Fund IV of just over €10 billion, with a further €1 billion of commitments still expected to come.