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Europe's largest buy-out on the cards in joint US-UK private equity bid

The Spanish telecoms giant Grupo Auna is reported to be the subject of a €11 billion bid by a consortium made up of Apax, CVC, Blackstone, Carlyle and Providence.

The Financial Times has reported that the UK private houses CVC Capital and Apax Partners have teamed with US investors Carlyle, Blackstone and Providence to prepare a bid which, at €11 billion, would be nearly twice the size of the previous largest European deal ... the €5.65 Italian Seat Pagine Gialle LBO.

The move has been seen in the context of the size of the giant funds currently being raised by the largest private equity houses - with firms like Carlyle targeting over $5 billion in their latest fund raising, while Apax is said to be weighing in with a €4.5 billion target on their present fund raising round.

A previous offer of around €8 billion for Grupo Auna made earlier in the year was thought to have been rejected by Auna management as being too low.

Although there seemed to be universal cries of no comment across the board from all the private houses involved, as well as the main investors in Grupo Auna, Endesa and Grupo Santander, the FT reported that one person close to the situation had said, "There is no reason for them (the private equity firms) to walk away after being rebuffed once."

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