Permira and Barclays bid vehicle refuses to raise its 1030p per share offer for retirement home specialist, leaving the way clear for Bank of Scotland consortium.

The three-month battle to buy retirement home specialist McCarthy & Stone appears to be over with the Permira and Barclays bid vehicle refusing to raise its 1030p per share offer leaving the way clear for a Bank of Scotland led consortium.

The Permira/Barclays bid, known as Mars Bidco, offered 1030p per share offer valuing the company at £1bn on 28 July 2006.

This was swiftly followed by a 1075p per share recommended offer from the Mother Bidco consortium comprising BoS and the Reuben Brothers and retail Tycoon Sir Tom Hunter. This deal valued the company at £1.1bn.

The McCarthy & Stone board announced today that that Mars Bidco would not be increasing its proposal. It also reiterated its recommendation and support for the Mother Bidco.

Keith Lovelock, executive chairman of McCarthy & Stone said: “I am pleased that the uncertainty surrounding the future of the company has been resolved and look forward to an orderly transfer of ownership and management to Mother Bidco in due course. We are delighted that the sale process has generated excellent value for shareholders and the management team looks forward to working with Mother Bidco in the future. I believe the company is very well placed to flourish under Mother Bidco's ownership.”