AA, Britain’s biggest roadside recovery service, is reportedly being subject to a £3bn takeover bid from American investment firm Apollo Global Management (AGM).
AGM, co-founded by Leon Black, one of Wall Street’s financiers, has joined a trio of rival bidders in approaching the debt-laden company.
Last week, the AA confirmed that the company was in takeover talks with three prospective bidders.
The bids came from a consortium of Centerbridge Partners and Towerbrook Capital Partners, Platinum Equity and Warburg Pincus.
The firm that acquires the AA will take on the responsibility of the company’s £2.65bn debts.
In a statement, the AA said: “The board of AA believes that in order for the business to achieve its full potential it needs to have greater financial flexibility to make longer-term investment decisions that are in the best interests of the group’s shareholders and its wider stakeholders.
“To achieve this, the group needs a more stable and sustainable capital structure and this requires a significant amount of additional new capital in order to reduce the group’s indebtedness and to fund future growth.”