UPDATE 1-CD&R latest entrant in RBS WorldPay chase -sources

* Hertz owner competing with six other bidding groups

* U.S. buyout house raised $5bln fund last year

(adds detail, background)

By Quentin Webb and Simon Meads

LONDON, May 19 (BestGrowthStock) – Clayton, Dubilier & Rice (CD&R),
the venerable U.S. buyout house, has entered the crowded field
of suitors vying for Royal Bank of Scotland Group Plc’s (RBS.L: )
$4 billion payment-processing arm, people familiar with the
matter said.

CD&R’s emergence is unusual, because the sale of RBS’s
Global Merchant Services (GMS) business is already in a second
round of bidding. It comes just days after American Express Co
(AXP.N: ) and Permira [PERM.UL] were revealed as potential joint
bidders. [ID:nLDE64G0MX]

Aside from Amex-Permira, CD&R is competing with five other
sets of bidders: Atos Origin (ATOS.PA: ) SA, CVC Capital Partners
[CVC.UL] and Welsh, Carson, Anderson & Stowe; Advent
International and Bain Capital; Canada’s Moneris Solutions; TPG
[TPG.UL]; and Warburg Pincus [WP.UL].

CD&R and RBS declined to comment.

Europe’s competition regulators compelled RBS to sell GMS,
which includes the WorldPay business, after the bank took tens
of billions of pounds in state support. The business could fetch
some 2.5 to 3 billion pounds ($3.6 to $4.3 billion).

CD&R finished raising a new, smaller-than-expected $5
billion fund last year. In December it bought British Car
Auctions (BCA) from rival Montagu Private Equity.

Founded in 1978, CD&R is one of the world’s oldest private
equity firms. It led the $15 billion takeover of Hertz car
rentals from Ford Motor Co (F.N: ) in 2005.

Many of CD&R’s existing investments focus on industrial
businesses or service industries rather than technology, with
portfolio companies that treat water, supply laboratory
equipment, and make metal products for construction firms.

It is not clear if CD&R is working alone or if it has lined
up financial or technology partners for its bid.

Investment Advice

($1=.7017 Pound)

(additional reporting by Steve Slater; editing by Douwe
Miedema)

UPDATE 1-CD&R latest entrant in RBS WorldPay chase -sources