A problem with WH Smith’s pension fund has scuppered a possible takeover of the retail chain by Permira.
The private equity firm was negotiating to make a £940m bid for the retailer.
But the discovery that the company’s pension fund – which carried a deficit of as much as £250m – could be wound up by its trustees on change of ownership doomed negotiations.
Analysts believe Permira will try to come back with a lower offer.
Permira said: “We confirm that we are continuing a dialogue with trustees of the pension fund in order to clarify their position with reference to the pension fund deficit.”
References: Financial Times 23/06/04 page 21, The Daily Telegraph 23/06/04 page 29, page 36 (City Comment), The Times 23/06/04 page 40, page 44 (Need to Know), The Guardian 23/06/04 page 25, The Independent (Co
