CVC, Permira and PAI forced to nego

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CVC, PAI Partners and Permira have failed to increase their offers for the Spanish clothing retailer Cortefiel. CVC, which is bidding for Cortefiel through Coral Retail, confirmed its original offer of E17.90 per share. This offer was agreed with the Hinojosa family, which founded Cortefiel and owns 55.74% of the company. Permira and PAI presented a bid through MEP Retail and have confirmed their offer of E18.40 per share. The fact that neither side has increased its offer means that the company's shares are likely to be split between the two. Under the terms of the agreement between the Hinojosa family and CVC, the Hinojosa family is obliged to sell its shares to CVC unless it receives an offer at least 8% higher than that of CVC, in this case E19.33 per share. According to Spanish press reports, the minimum acceptance required for the PAI/Permira bid will be reduced to 25% while that of CVC will be reduced to 50%. Under these conditions, CVC will take a 55.74% stake and PAI/Permira will take approximately 44%.