TPG and CVC set sights on Debenhams.

Financial News, September, 2003

Venture capitalists CVC and Texas Pacific Group are in talks with investment bank Merrill Lynch in an attempt to get its backing for a rival takeover bid for Debenhams.It is understood that CVC and TPG are trying to persuade Merrill Lynch to provide some equity for a highly leveraged offer. Debt finance is expected to come from HBOS and HSBC, while investment bank Morgan Stanley is acting as financial adviser.

Merrill Lynch has also been appointed as broker to CVC and TPG, should they top Permira's bid of 425p a share cash, valuing Debenhams at [pounds sterling]1.54bn ([euro]2.2bn).