Boots board meeting under way

Following Friday's£9.7 billion offer by private equity giant KKR for Alliance Boots, the retailer and pharmaceutical manufacturer's main board is believed to be mid way through an emergency meeting aimed at assessing the proposal.

Stock of Alliance UniChem soared when the market opened this morning and, by early afternoon, the shares were just one penny shy of broaching the psychological£10.00 barrier - the price being offered by KKR.

Neither the company or the bidder have made further announcements, although it is understood that, over the weekend, a number of senior board members were banned from talking to each other in an effort to stem off potential conflicts of interest.

KKR's bid is being fronted by Stefano Pessina, who owns 15 per cent of the company's share capital and is on the board of Alliance Boots.