Allianz Considers $6.77 Billion Acquisition of AA Roadside Rescue Giant
Potential Acquisition and Industry Context
Allianz Eyes Major Takeover of AA
Aug 29 (Reuters) - Germany-based financial services company Allianz is considering a £5 billion ($6.77 billion) takeover swoop for AA, the breakdown recovery group, Sky News reported on Saturday.
Background of AA
AA, founded by a group of motoring enthusiasts in 1905 and known in Britain for its yellow recovery vehicles, was taken public by its previous private equity owners in 2014 at 250 pence a share.
Competing Bidders and Negotiations
Other Interested Parties
Allianz is one of a small number of parties which have been holding talks with advisers to the AA about a deal, Sky News said, adding that private equity firm EQT was another bidder.
Dual-Track Process
Sale vs. Public Listing
The AA's private equity owners have been pursuing a so-called dual-track process for most of this year, with the alternative to a sale being a public listing on the London Stock Exchange, Sky News said.
Both companies declined to comment.
Previous Sale Reports
The Financial Times reported last year that the British roadside recovery company was eyeing a £5 billion sale and was seeking buyers.
Additional Information
($1 = 0.7390 pounds)
(Reporting by Preetika Parashuraman in Bengaluru; Editing by Aidan Lewis)
