what is KKR up to?
One suggestion has been that it is looking at its other current high-profile transaction – its involvement with CVC et al on a possible bid for J Sainsbury – as the reason for the bid. Merging the two, the suggestion goes, could have great potential in terms of distribution savings, and potentially create a rival to Tesco’s dominance on and off the high street. But whether this is likely is far from the case. After all, CVC is leading the Sainsbury consortium – and it is noticeable that KKR is not currently working with any other private equity company or fund on the Alliance Boots bid. And what of its other retail investments? De Nunzio’s Maxeda is a department store chain, and Dollar General sells everything from mops and buckets to eggs and luncheon meats. There would be few cost savings here. No, if KKR were to be successful in its current foray, it would most likely to be by investing in Alliance Boots on a stand-alone business. Of course, the retailer is by no means on its knees,
