AA suitors get bid extension as talks continue
AA
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The AA's potential bidders have been given an extra four weeks to make an offer for the the breakdown service as talks continue.
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On 4 August AA said it was in discussions about a cash takeover with three private equity groups: Centerbridge and TowerBrook acting together, Platinum Equity Advisors and Warburg Pincus.
The potential buyers had until 17:00 BST on Tuesday to make a firm offer or pull out. AA said it had asked the Takeover Panel for an extension until 17:00 on 29 September to so that talks can continue and that the panel had agreed.
"Discussions with each of the potential offerors have continued to progress and their due diligence is ongoing," AA said. "As a consequence … the board of AA requested that the panel extend the deadline." The deadline will only be extended further with the agreement of the Takeover Panel, AA said.
AA is considering selling itself because it is burdened with £2.65bn of net debt with £913m due to be repaid in the next two years. The company said this amount of debt was a constraint on its long-term business prospects and that it needed significant amounts of new capital.
The company has said each of the potential bidders was prepared to provide large amounts of new equity capital. AA is considering other options to strengthen its finances, including raising new equity.