Iceland Foods bids in, US Republican candidate connected to one

Offers on the British supermarket chain Iceland Foods are close to the value which the resolution committee of failed Icelandic bank Old Landsbanki had hoped for. The likely Republican presidential candidate in the USA is connected to one of the bidding investment funds.

The deadline to submit purchase offers for Iceland ran out on Wednesday night and since then the Landsbanki resolution committee has been going over the bids with advisers. Old Landsbanki holds 67 percent of Iceland Foods and the bankrupt estate of Glitnir Bank holds ten percent of the company. The two companies are bidding on the combined shares of the two old banks.

At least two offers were received from two investment funds; BC Partners, a British company, on the one hand and Bain Capital, which is based in Boston, USA, on the other. No word has yet been released about the precise value of the offers, but they are thought to be around the GBP 1.5 billion that Landsbanki was hoping for. That is around ISK 300 billion.

The sale proceeds will largely be spent on repaying the British and Dutch governments for the money they lost in Icesave.

One of the founders of Bain Capital is Mitt Romney – who is now seen as one of the most likely Republican presidential candidates for the US election this autumn. Romney headed Bail Capital until 1999, before turning his attention to other projects. He still receives a cut of the company’s profits and has been paid millions of dollars from the company in recent years. Mitt Romney is one of the richest men ever to have tried to become President. His personal assets are reckoned to be as high as USD 250 million.