JPMorgan analyst Lisa Gill noted yesterday's Bloomberg report that KKR (KKR) has made a formal approach to take Walgreens Boots Alliance (WBA) private, pointing out that neither the existence of a bid nor a potential price have been confirmed by either the company or the PE firm. She believes a potential deal could be valued at up to $75 per Walgreens share, assuming a maximum lease-adjusted leverage ratio immediately post the deal close of 6.5 times. She also assumes private equity owners would require a minimum IRR of 15% over a five-year period and an exit multiple of 10.0 times forward EBITDA after five years, all of which could imply a maximum transaction value of about $85B. Although, if the IRR requirement were higher, then the equity value would need to be lower, added Gill. She has a Neutral rating on Walgreens Boots shares.