Toys R Us auction steps up a gear
Break-up less certain as new players target $5bn business
Bidders taking part in the auction intended to break up Toys R Us are having to rethink their approach after two potential bidders for the whole operation emerged.
The [i]Wall Street Journal[/i], reports that an investment group led by Cerberus Capital Management has made an offer which would value the toy retail group at around $5bn,
Separately, the [i]Times[/i] has reported that buyout firm Kohlberg Kravis Robertshas also made an approach for the whole operation.
The Toys R Us board has been considering a break up of the group, seeking offers for the Toys R Us chain, with a split sale of the non-US, includng the UK chain, seen as likely. The company had then planned to focus on rolling out its more profitable Babies R Us chain.
US reports say that Toys R Us is now reconsidering its position, although the company has declined to comment officially. With at least four potential bidders thought to have made approaches for at least part of the business, they may also now consider offers for the whole operation.
