Guy Hands, founder of private equity group Terra Firma, is eyeing "substantial" deals and expects European governments to speed up selling off state assets as the economic recovery gains momentum.
Hands, who is chairman and chief investment officer of the group, said he was eyeing deals that have a large quantity of assets, but are looking cheap relative to pre-credit crunch valuations.
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"I think it really depends what area of the market you're in. The area we're in the market, which is really deals which are very substantial, which have a large quantity of assets in them, are still substantially below valuations from 2007 and still have quite a long way to go," he said.
Hands, who has overseen more than 30 transactions in the last 20 years with Terra Firma including the unsuccessful £4 billion takeover of record group EMI in 2007, said he expects privatizations in Europe, but perhaps not quite on the scale that was seen in the 1980s and 1990s.