Brera denies management buy-out as high price tag deters potential purchasers
Brera Capital will have difficulty selling GAB Robins' global operations after placing a price tag of $85m (£44.4m) on the company, according to US analysts.
Earlier this month, Brera appointed Bank of America as its adviser to sell the GAB Robins operation it bought in 1999.
But, analysts believe that the company has spoken to the majority of potential buyers over the years and "many doors have closed".
One US analyst said: "Before [Brera] sold the Sergon division it wanted around $100m for the company. Sergon was sold for $15m, so the figure Brera wants is $85m. However, the Bronx-style of negotiation which Brera uses has over the years resulted in many doors being slammed shut.
"There are hardly any parties left to deal with," he added.
Analysts believe the more realistic value of the company is between $60m and $65m.
Last year merger talks between GAB Robins and Cunningham Lindsey broke down due to price as well as management issues. It is understood that talks have resumed but that the current price tag is prohibitive to a successful merger.
Brera said in a statement: "Brera, being a financial investor, will seek to realise a return on its investment at some point.
"Since investing in the GAB Robins business in late 1999, Brera's investment approach has always been that if it continues to invest in the business with the goal of improving operations and its market position, an attractive investment realisation opportunity will eventually make itself available. No management buy-out is planned.
It added: "The company and Brera have a close relationship with Bank of America and they have worked on a number of merger and acquisition and financing opportunities on behalf of the company. At this time, there is nothing imminent to report."
