Alliance Boots rejects 'friendly' bid

There was mounting speculation that Alliance Boots, subject of a £9.7bn takeover bid from its deputy chairman Stefano Pessina and private equity firm Kohlberg Kravis Roberts, was holding out for a higher offer from the prospective buyers, as Optician went to press.

Earlier this week, the Alliance Boots board, which held an emergency meeting to discuss the bid, said the offer 'did not reflect the fundamental value of the company or the attractive prospects, opportunities and synergies available to Alliance Boots'.

Directors said the offer would not be recommended to shareholders.

The company's shares have surged since the bid emerged and city analysts are confident that the bidders will raise their initial offer, equivalent to £10 per share.