The first large deal by Terra Firma, Guy Hands’ new private equity group, has fallen through after Cologne council vetoed his plans to buy a portfolio of flats in the city in a deal worth around €1.9bn (£1.2bn).
Terra Firma’s strategy is to buy out-of-favour businesses with reliable cash flows.
Terra Firma plans to raise €3bn for a fund by June.
References: Financial Times 08/02/03 page 12
