Private equity firms gear up for a spree

Low interest rates are fuelling the growing trend for takeovers, as seen by the recent bid for Allliance Boots

The spending spree by private equity firms, which has seen Boots become the latest company to receive a takeover bid, is set to continue, according to managers. Niall Paul, head of equities at Morley, said the backdrop of low interest rates and a stable UK economy has provided an ideal environment for private equity activity in the market. The latest takeover bid came from Kohlberg Kravis Roberts (KKR), a US buyout group, that offered £9.7bn for Alliance Boots. The offer came five weeks after a private equity consortium comprising KKR, as well as CVC and Blackstone, said it was consideri...