Alliance Boots' Baker to get 6.5 mln stg from KKR/Pessina takeover

Alliance Boots' Baker to get 6.5 mln stg from KKR/Pessina takeover

	Published : Wed, 09 May 2007 10:18 By : Agencies Print this Story

LONDON (Thomson Financial) - Richard Baker, chief executive of Alliance Boots PLC, will receive 6.54 mln stg through the exercise of share options if the agreed takeover of the international health and beauty group by Kohlberg Kravis Roberts (KKR), the US private equity group, and executive deputy chairman Stefano Pessina, goes through.

The offer document for the 11 bln stg deal from AB Acquisitions, KKR/Pessina's vehicle, shows Pessina himself will receive 820,539 stg.

George Fairweather, Alliance Boots' finance director, will receive 627,472 stg, Scott Wheway, retail director, will get 1.19 mln stg, and Steve Duncan, community pharmacy director, 530,938 stg.

Ornella Barra, wholesale and commercial director and Pessina's partner of 24 years, will get 530,938 stg.

KKR/Pessina have said they are keen to work with Alliance Boots' existing management. However, it is not yet clear who is staying on. Baker said last week he has not yet discussed the matter with KKR/Pessina.

The 145-page offer document, posted to shareholders today, reveals KKR and Pessina will both initially have a 32.3 pct equity stake in AB Acquisitions.

Pessina will cash out one third of his current 15 pct stake in Alliance Boots, which is worth some 1.7 bln stg, investing the rest in the new company.

The equity balance of 35.4 pct will be held by a consortium of banks -- Barclays Bank PLC, Bank of America, Citigroup, Deutsche Bank, JP Morgan, Royal Bank of Scotland and UniCredit Group.

The balance of the deal will be funded by an 8.2 bln stg debt facility and a revolving credit facility of up to 820 mln stg, provided by the same consortium of banks.

The consortium's offer, pitched at 1,139 pence a share, is being made through a court sanctioned scheme of arrangement.

The offer document also revealed the court meeting and extraordinary general meeting of Alliance Boots shareholders to vote on the deal will both be held on May 31.

The scheme is scheduled to take effect on June 26, with Alliance Boots shares de-listed on June 28.

At 9.51 am shares in Alliance Boots were unchanged at 1,121-1/2 pence.

james.davey@thomson.com

jdd/slm

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