Merrill Lynch Global Private Equity has made a surprise appearance in the bidding for Debenhams by lending support to private equity firms CVC and Texas Pacific Group in their £1.7bn (€2.4bn) offer for the UK retailer.

CVC, Texas Pacific and Merrill's 455p-a-share offer, made through an investment vehicle called Baroness Retail, trumps last month's 425p-a-share offer from Laragrove, a private equity consortium which comprises Permira, Blackstone and Goldman Sachs.