The AA PLC (LON:AA.) saw its shares reverse sharply on Wednesday after a Beverly Hills-based private equity firm dropped plans to make an offer for the roadside assistance group.
In a statement, Platinum Equity said discussions between itself and the board of the AA have been “terminated by mutual agreement” shortly before a September 29 deadline set by the AA for potential offers for the group after a previous deadline lapsed earlier this month.
Platinum’s exit follows an announcement from the AA in early August that it had been approached by several parties concerning an offer for the company and a potential refinancing deal.
Other parties involved in discussions for a potential bid include Centerbridge Partners Europe and TowerBrook Capital Partners (U.K.), acting together, and New York fund Warburg Pincus.
However, reports emerged previously that the three remaining bidders were in discussions to potentially combine their forces to make a bid for the company.
Platinum may also not be completely out of the race either, saying in its announcement on Wednesday that it reserves the right to participate in an offer for the AA within the next six months.
AA chairman John Leach has said previously that the refinancing forms part of a plan to cut down on the company’s debts and allow it to achieve its “full potential” and provide it will a “long-term capital structure”.
Platinum’s exit from offer discussions seemed to have rattled investors, with AA’s shares down 16.5% to 28.4p in mid-morning trading.