01 June 2007
The trustee's chairman of Boots company pension scheme
criticised the board of Alliance Boots for backing an £11.1bn
takeover by the Kohlberg Kravis Roberts (KKR) consortium without
reaching an agreement on retirement benefits.
John Watson said the pension trustees had made it clear that the
£8 billion of borrowings required to finance the acquisition
will have serious implications for pensioners in the scheme.
He also went on to say that he was disappointed that the
Alliance Boots board chose to recommend the proposed acquisition
without ensuring clear plans had been agreed for the future funding
of the scheme.
It is believed the KKR consortium remains in discussions with
the pension trustees and has said it was working hard to achieve a
constructive result.
Any takeover has to receive clearance from the Pensions
Regulator.
