United Utilities mulls Vertex bids
14 June 2006 | 4265 views | 0
United Utilities has hired investment bank Merrill Lynch as a financial adviser after receiving "several" bid approaches for its business process outsourcing (BPO) unit, Vertex.
According to a report by UK broadsheet the Daily Telegraph, which cites people close to the company, Merrill Lynch has been appointed to deal with the bid approaches.
Potential buyers for the business are thought to include Tata Consultancy Services or Hyder Business Services.
There has been speculation that Vertex could be worth between £400m and £500m and a sale could be underway by September if United Utilities is impressed by the offers, says the report.
Vertex moved into the financial services sector after buying UK life and pensions vendor Marlborough Stirling in March 2005. The firm has recently inked a £45 million mortgage outsroucing deal with Deutsche Bank.