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article imageClash Of The Giants and Yet More Jobs Are Cut.

By Michelle Duffy     Mar 10, 2007 in Business
Kohlberg Kravis Roberts, better known as it's initials, (KKR) is set to start a giant binge on British companies, eating up Boots and Sainsbury's in it's path.
U.S masters of take over bids, KKR after hungry again. This time, it is major chemist players, Boots - the biggest chemist high street chain in Britain. After the merger a year ago of Boots and second in command, Alliance Unichem, which also saw them step into the FTSE 100 list, they have caught the eye of KKR who are also interested in the purchase of major supermarket monster, Sainsbury's.
It is reported that big chief of the recently named, Alliance Boots, Stefano Pessina, and KKR are in intence negotiations over a possible deal.
KKR are also set to clinch a big deal with Sainsbury's which could see the deal worth £10 billion. Not all will probably go smoothly as the GMB union, who are asking for a change in tax arrangements, are said to be sniffing around the deal. It is the unions job to try to 'curb' such high profiled and emensely powerful takeover deals.
Private equity firms such as KKR are being watched most closely since a recent popularity in big take over bids which demand massive borrowing expenses.
GMB are pressing for Gordon Brown to scrap tax free loans for private firms as the current state makes it too easy and allows big firms to become too powerful. It is the union that also blames high flyer deals for large redundancies after deals have been clinched.
Paul Maloney practically takes the news personally. As senior GMB organiser, he feels a responsiblity to all in his grasp. He chanted, "There you go again, it's another high street name, a profitable store, well known but getting ready to be asset stripped."
Yet Mr Maloney fears the worst for workers and believes that such bids no good. Recently, in 2004, 900 people lost their jobs when Permira closed a deal at AA. This year the same company is closing another deal with Bird's Eye - the frozen food giant. In this case, it will be 500 more people in the unemployment queue.
More about Boots, Takeover, Bid
 
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