The 450 mln stg auction for sandwich chain Pret a Manger is close to collapse due to worries about a US recession and reinvestment from its founders, the Sunday Telegraph reported without citing sources.

The paper said that Lion Capital is the latest to drop out of the bidding process, although London-based investment fund Bridgepoint Capital is still in the race for the chain. City sources also told the paper that a Goldman Sachs-backed (NYSE:GS) mystery American has shown interest.

The bidding process has been hit by worries that a US recession will hit its expansion plans across the Atlantic, as well as fears that millionaire founders Sinclair Beecham and Julian Metcalfe will not reinvest in the business.

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Posted: 12|2|07 at 6:23 pm. Filed under: Auction News.