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A $10bn plus takeover bid for Walgreens Boots Alliance (WBA) from private equity firm Sycamore Partners could lead to an auction of Boots, according to reports from Sky News.
Should Sycamore be successful in taking over the pharmacy chain it will reportedly look to separate ownership of Boots.
The Wall Street Journal reported on Tuesday that Sycamore Partners was in talks to buy WBA, which has seen its market value plummet to less than $8bn in recent months.
Italian dealmaker Stefano Pessina, who has led a string of deals involving Boots, is thought to be central to any carve-out of the company.
One source said that Pessina, who holds roughly a 17% stake in WBA, may end up as the principal owner of Boots depending on how the deal with Sycamore was structured.
It comes after WBA conducted and terminated at least two sales processes of Boots.
The company decided that offers from parties including Apollo Global Management did not offer sufficient value.
Walgreens acquired a 45% stake in Alliance Boots in 2012, completing its buyout of the business two years later.
Boots recently appointed a new boss after Seb James, its long-serving managing director, resigned for a new role in the healthcare industry.
