KKR & Co. Inc. (NYSE:KKR), TPG Inc. (NasdaqGS:TPG) and Advent International (Advent International, L.P.) are among suitors that have expressed initial interest in Italian drugmaker Recordati Industria Chimica e Farmaceutica S.p.A. (BIT:REC), people familiar with the matter said. The buyout firms have made preliminary proposals to acquire part or all of CVC Capital Partners plc?s (ENXTAM:CVC) controlling stake in Milan-listed Recordati, according to the people.

Shares of Recordati rose as much as 3.6% on June 18, 2024 trading. They were up 1.5% at 4:03 p.m. in Milan, giving the company a market value of ?10.1 billion ($10.8 billion). CVC also received separate interest from Italy?s Angelini Pharma SpA (Angelini Acraf S.p.A.) as well as Abu Dhabi sovereign wealth fund ADQ (Abu Dhabi Developmental Holding Company PJSC) for a stake in the business, the people said, asking not to be identified discussing confidential information.

Interested parties are wary of Recordati?s valuation and are unlikely to offer a significant premium to its current share price, according to the people. Some suitors are only keen on buying a minority stake, they said. Negotiations are at an early stage and any deal is unlikely to be reached in the near term, the people said.

Representatives for Advent, Angelini, CVC, KKR, Recordati and TPG declined to comment. A spokesperson for ADQ didn?t immediately respond to queries during a public holiday in Abu Dhabi.