AA in talks with TowerBrook and Warburg Pincus on joint bid

AA

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The AA said it was in talks with TowerBrook Capital and Warburg Pincus International about a joint offer for the company after two other potential private equity bidders pulled out of the running to buy the car breakdown service.

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The company said TowerBrook and Warburg had expressed a strong interest in making an all-cash offer for the business. It said such an offer would reduce AA's debt in line with the board's objectives.

TowerBrook was originally working with Centerbridge Partners on a joint bid proposal and Warburg was operating on its own. Centerbridge and Platinum Equity, a sole potential bidder, pulled out of talks on Wednesday leaving TowerBrook and Warburg to combine.

AA said: "The board now intends to progress its discussions with the consortium regarding a possible offer and a further announcement will be made in due course as appropriate. However, there can be no certainty that any offer will be made for the company, nor as to the terms on which any offer might be made."

AA has been in talks with several private equity firms since early August to agree a deal to reduce its £2.65bn of debt. A sale would be a route to a needed big capital injection to strengthen the balance sheet. AA said it intended to publish its interim results on 29 September.