Doubts over the Tussauds sale

INVESTMENT bank Lazards is looking at other options for Tussauds after bids to buy the waxworks and theme park operator fell £100m short of its target.

Charterhouse, the private equity firm that owns Tussauds, was expecting about £900m. But bids from French private equity group PAI and London-based BC Partners ranged between £750m and £800m.

Lazards, which is handling the sale, is now thought to be considering either an initial public offering or a recapitalisation of Tussauds. Insiders suggest it favours the latter option.

Both bidders had expected Lazards, headed by veteran dealmaker Bruce Wasserstein, to make an announcement last week on which had been successful.

Tussauds, which recently launched an interactive Kylie Minogue figure that speaks to visitors at its London waxworks museum, denied that the announcement had been delayed.

A spokesman said: 'No timetable had been set.' But sources close to the bidders are adamant that the decision should have been made by now.

Charterhouse had looked at floating the business before being approached by other venture capitalists, including Permira and US buyout group Kohlberg Kravis Roberts. But they pulled out of the auction in recent weeks.

A City source said: 'There is increasing speculation that Tussauds will be withdrawn from sale. Everybody was meant to be after Tussauds and then only two survived. Lazards and Charterhouse have been decidedly silent on the matter.'