Consortium withdraws after failed Informa bid

LONDON - The private equity consortium behind a rejected £1.9bn takeover bid for B2B publishing giant Informa has officially withdrawn its offer.

The consortium, consisting of Providence Equity Partners, Carlyle Group and Blackstone Group, said it reserves the right to make another offer for the Lloyd's List publisher within the next six months.

Informa rejected the £1.9bn proposal on September 5, saying the 450p per share price "significantly undervalued" the firm. An initial proposal drawn up by the consortium in June valued Informa at 506p per share, including a 6p dividend.

The 450p bid was a 32% premium to Informa shares' 342p closing price on the London Stock Exchange yesterday.

However, when it rejected the bid, Informa chairman Derek Mapp said: "Informa has attractive future prospects and is continuing to deliver growth across the business even in the face of a weaker economic environment. We have a first-class management team to drive the business forward."

A fourth private equity firm, Hellman & Friedman, which was originally part of the consortium before dropping out in early September, also reserves the right to make a bid for Informa over the next six months.

 

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