Two pull out of Saga bid race

BLACKSTONE and a team of Advent and Montagu are among venture capitalists that have quit the auction for the holidays-to-insurance for the over 50s firm Saga.

Today is the deadline for second-round bids in the £1.1bn battle. The price is being pushed up by strong institutional demand for a float of the business - the other option owner Roger De Haan is considering.

UBS, the investment bank appointed to sell Saga, had given five private equity groups until midday today to submit final bids.

The investment bank has put pressure on the bidders to at least match what UBS could otherwise expect from listing Saga on the Stock Exchange.

'It's a very unattractive process for the bidders but it (Saga) is just a great business,' one private equity investor is reported as saying.

City institutions showed considerable interest during Saga's pre-float marketing roadshow earlier this month. There is also big retail demand, mainly from Saga customers, for the company's shares.