Ontario Teachers’ Pension Plan and Wendel are also expected to make second round offers, said Reuters, citing banking sources.
The sources also said that Bain Capital, Blackstone, Canada Pension Plan and Cinven are pulling out of the bidding war and will not submit second round bids.
Owners Charterhouse and CVC Capital Partners received first round offers for Ista – which is worth €3bn ($3.85m) – last week after putting the business up for sale last year.
Charterhouse acquired Ista for €2.4bn including €2.1bn of debt in 2007 from CVC, which later reacquired a 24 per cent stake.
The successful suitor will have to provide up to €1.2bn of equity with bankers currently arranging a €2bn debt package, which is seven times the company’s EBITDA of €290m, the sources added.
They explained that there is not enough liquidity in the markets to raise €2bn, but the necessary funding could be sourced from senior leveraged loans, mezzanine loans and high yield bonds.
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