An £11 billion bid battle for Alliance Boots broke out today between a private equity firm led by financier Guy Hands and another backed by billionaire Stefano Pessina.
US buyout firm Kohlberg Kravis Roberts and Mr Pessina, Alliance Boots's deputy chairman and biggest shareholder, said they had agreed to buy Britain's biggest pharmacy chain with a firm offer of 1,090 pence a share in cash.
But hours later Guy Hands's Terra Firma, working with medical charity Wellcome Trust and banking group HBOS, said it had made an indicative proposal to the company's board worth 1,126 pence a share in cash.
This would fall to an actual offer of 1,115 pence a share or £10.8 billion for investors after taking account of the fee the consortium would have to pay to break up the deal with KKR and Pessina.
Alliance Boots shares surged to as high as 1,141 pence on speculation the battle had further to run.
