Stefano Pessina and KKR were last night preparing to table a firm £10.1bn bid for Alliance Boots in what they hope will be a knock-out blow against rivals who are also circling the health and beauty group.

Bankers for Mr Pessina, executive deputy chairman of Alliance Boots and its largest shareholder, and KKR, the US buy-out group, were locked in talks with company executives. A statementis expected as early as thismorning.