Advent in talks to buy Douglas Holding stake: sources

By Staff Reporter

Aug 14, 2012 09:40 AM EDT

Private equity investor Advent is aiming to take a majority stake in German books-to-perfumes retailer Douglas Holding AG (DOHG.DE), several people familiar with the matter said on Tuesday, the latest suitor to try its hand.

Advent has been in talks with Douglas - and the Kreke family which owns 12.7 percent of the shares - for some time, but no deal is imminent, two of the people said.

Advent is also in talks with Douglas shareholder Erwin Mueller to buy his effective 25.8 percent stake, comprising 10.8 percent of the equity and options for a further 15 percent, another person familiar with the process said.

Douglas Chief Executive Henning Kreke said in January his family would like to take the group private with the help of private investors.

Since then, other financial firms such as BC Partners BCPRT.UL who were interested have dropped out of the process, due to a restructuring at Douglas bookstore chain Thalia and concerns over the intentions of rival drugstore owner Mueller, one source said.

Permira PERM.UL is also interested in Douglas, one person said. Permira declined to comment.

Two of the people Reuters spoke to said Mueller was looking to sell after losing money speculating on the Swiss franc, although he would not sell without getting a price above the current share price of around 33 euros.

German paper Frankfurter Allgemeine Zeitung reported on Tuesday that Advent was close to a deal to buy the shares and options of Mueller for around 36 to 37 euros ($44.47-$45.70).

Advent is also close to agreement with the Oetker family, behind the Dr Oetker food empire, who are the biggest shareholders in Douglas with a 25.8 percent stake, the paper reported, citing speculation in financial circles.

Shares in Douglas, which have gained 18 percent this year on the back of takeover speculation, were up 2.3 percent at 33.67 euros by 1024 GMT, outperforming a 0.3 percent gain on the index of German medium-sized companies .MDAXI.

Mueller could not immediately be reached for comment. Advent, Douglas and Oetker declined to comment.

Mueller said previously he would not comment on his intentions regarding his Douglas stake.

($1 = 0.8096 euros)

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