Daily Telegraph

ALLIANCE Boots has agreed to open its books to Guy Hands’ private equity firm Terra Firma, which has teamed up with the Wellcome Trust to make a bid approach for the high street retail and distribution group.

Hands approached the Alliance Boots board at the weekend and has now been given access to its virtual ‘data room’. Yesterday he appointed Lehman Brothers to advise on a possible bid.

Hands’ decision to join forces with Wellcome Trust, the world’s second-largest charity, pits him against Boots Alliance deputy chairman and 15% shareholder Stefano Pessina’s takeover attempt with his private equity backer, Kohlberg Kravis Roberts. However, Pessina has indicated that he will back KKR’s bid, even if a higher offer comes in.