Emap shares leap as it confirms interest from buyers

LONDON - Emap, publisher of Grazia and FHM magazines, has confirmed there is interest from buyers in all of the company, which sent its shares up almost 40p, as it continues a review that could result in the break-up of the company.

In a statement today, the board said it had "received further interest for all parts of the group", following the announcement of a strategic review on July 27. This review could result in the sale of Emap or the demerger of some of its divisions.

Shares in Emap were trading up by 4.6% this morning to 876.5p, an increase of almost 40p. At the same time, Emap said that trading was encouraging.

In a statement, the company said: "The B2B division continues to deliver strong underlying revenue growth; radio is performing well in what appears to be a more positive market; and, while revenue growth remains challenging in our consumer magazine markets, there is increasing confidence that the operational efficiency initiatives commenced last year will deliver benefits earlier than anticipated."

Reports have linked a number of parties with bids for parts of Emap, including Future Publishing, United Business Media and the private equity firms Apax and Cinven.

Guardian Media Group has a warchest for acquisitions following the sale of Auto Trader, and is believed to be interested in Emap's radio assets, which include Kiss and Magic.

Sir Robin Miller, former Emap chief executive, is also talking to investors about the possibility of making a bid for Emap's consumer magazines.

Emap plans to update the market further on the strategic review when it publishes its interim results on November 13. At the same time, it continues its hunt for a new chief executive, following the resignation of Tom Moloney.

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