Two groups of private equity firms are set to submit new offers for Italian banking-services provider Istituto Centrale delle Banche Popolari SpA as soon as this week, people with knowledge of the talks said.
CVC Capital Partners and Permira declined to enter exclusive negotiations over the weekend because they weren’t prepared to meet the seller’s terms, said three people familiar with the matter who asked not to identified because the information is private. The two firms are expected to put in a new offer on Wednesday along with counter bidding group Advent International and Bain Capital, they said.
CVC and Permira made two offers, one of 2.05 billion euros ($2.2 billion), with half of it in debt, and a second of 2 billion euros, with 15 percent debt, according to the people. The group refused to meet a request by the sellers to raise their first offer to 2.12 billion euros with half of it in debt, matching a proposal of Advent and Bain, which would have given CVC and Permira exclusivity, they said.
The selling shareholders, which include Credito Valtellinese and Banco Popolare, are trying to get the highest possible price for the company without regulators vetoing the deal amid concerns over the amount of money borrowed by private-equity firms to buy it, according to the people.
Spokesmen at ICBPI, Bain and Advent declined to comment. Officials for CVC and Permira did not immediately respond to telephone and e-mail requests seeking comment.