US giant in move for British Vita

AMERICAN buyout giant Texas Pacific Group (TPG) wants to take chemicals company British Vita into private ownership for £624m in cash to add to its list of investments ranging from Debenhams to Ducati.

Vita's board, headed by David Campbell, turned down an initial approach from TPG last night but the US company today stepped up the pressure, insisting that, 'with appropriate assistance from British Vita's management', it could complete the financial enquiries needed for a formal offer in a week.

Today's 335p-a-share revised indicative offer puts a value of £11.8m on 86-year-old former Vita chairman Fernley Parker's stake, which is the largest personal shareholding in the company.

TPG's London team of buyout specialists is understood to have secured financing for a deal, with US investment bank JP Morgan thought to be its preferred debt provider.

Vita shares rose 28p to 348p, valuing the business at almost £650m as investors banked on TPG having to increase its offer further to win the day. TPG, which has £5.3bn of investments worldwide, has been working on the takeover with bankers at NM Rothschild for three months.

Vita, which is thought to be virtually debt-free, reported net cash of £8.8m at its half-year stage last June but has since been buying back shares. Founded in a former Lancashire cotton mill in 1949, the company now employs thousands in 21 countries.