A buyout group led by private equity firm Permira has offered to pay 425 pence sterling per share for Debenhams, the British retail company operating in Dublin.
The independent directors of the UK department store chain have recommended to shareholders, it emerged today.
The bid values Debenhams at £1.54 billion pounds sterling and was made by the newly created Laragrove Ltd, which includes Permira, private equity firm the Blackstone Group and investment bank Goldman Sachs.
A source close to the company had said yesterday that Debenhams was close to recommending a 1.54 billion-pound bid from Permira, despite protests from shareholders that the offer was too low.
Permira and the two other firms have created a vehicle called Laragrove Ltd to acquire Debenhams, which has 102 stores in Britain and Ireland and two franchise outlets in Europe and the Middle East
The company, which in the year through August 2002 had turnover of 1.7 billion pounds, could not immediately be reached for comment today.
Permira is a private equity group advising funds of nearly nine billion euros. The Blackstone Group is a private investment bank that has raised over $14 billion. Earlier, Debenhams had confirmed that talks with two bidding groups were continuing but said it was not certain any offer would be put to shareholders.