Allianz Capital Partners, the captive investment arm of insurer Allianz, is struggling to find adequate bids for its vending machine business Selecta, potentially jeopardising the sale.
According to Reuters, offers from Advent International and Oaktree Capital Management came in below Selecta's debt level and the bidding has now reached the final stages.
Allianz bought Selecta in 2007 for £772.5m (€981.6m) in a buyout backed with £690m of debt, but is now struggling to offload it as buyers have been put off by its inability to deleverage in the past five years.
Although measures have been put in place to bring down fixed costs, it is not yet certain that Selecta will pass future banking covenant tests and its mezzanine debt is trading at a heavy discount in the secondary market.
There is a chance that CVC Capital Partners will enter the fray, as it already owns vending machine business Autobar, which it purchased off Charterhouse for €1.2bn in August 2010.