Issa Brothers Considering Withdrawing Bids for the Walgreens International Sector

A consortium backed by the Issa brothers is considering withdrawing bids for the Walgreens Boots Alliance's international sector because of price discrepancies, people familiar with the matter said.

Issas, who bid in collaboration with TDR Capital, hesitated to increase bids on the Boots drugstore chain at the request of Walgreens and is currently considering leaving. Walgreens shares compared previous profits to close 1.4%  in New York on Thursday.

People said the situation was fluid and if a price compromise with Walgreens could be reached, the investor group could still get back on track. According to Bloomberg News, US companies seeking a valuation of around £7 billion ($ 8.8 billion), while bidders have set prices at around £5 billion. In auction situations, potential buyers may leave the negotiating table to gain a tactical advantage.

The Issa-TDR group was one of the two main candidates remaining in the competition. They bid on boots through Asda Group Ltd, a co-owned British grocery chain.

The Boots sale has become a litmus test for transactions in the UK as credit markets have become increasingly vulnerable. The favorable funding terms that underpinned the number of leveraged acquisitions by UK companies last year are largely over. The banks that funded Wm Morrison Supermarkets Plc's private equity buyouts had to sell some of their debt at a significant discount.