Other buyers for Diageo's Burger King chain could re-emerge if the Texas Pacific Group (TPG) consortium fails to close its buyout because of reported difficulties in raising finance, industry sources said.
Although Diageo is "still committed" to closing the current £2.26 billion deal with TPG, the sources reckon if it cannot be closed in the final quarter of 2002 it may reopen the doors for private equity firm Thomas H Lee Partners, which lost out narrowly to the TPG bid.
"Whatever happens Burger King will be sold. Whether it's Texas Pacific or another buyer the group is committed to sell it," a source said.
Others buyers for the chain could also include private equity firms Blackstone and Madison Dearborn, which both pulled out of the Burger King auction.
Reports have suggested that the TPG-led consortium - which also comprises Bain Capital and Goldman Sachs Capital Partners - is having problems raising the finance for the leveraged buyout because of deteriorating market conditions and softening sales since the July agreement.
Some reports said TPG may seek to renegotiate the price because of a material change in market conditions.
PA