Informa bidders back off

Unprepared to up their offer of 450 pence per share, Providence, Carlyle and Blackstone have walked away from the deal for London-based publisher Informa.

A consortium of private equity bidders led by Providence Equity Partners has walked away from talks to buy UK business media group Informa for £1.9 billion (€2.4 billion ; $3.5 billion).

Having had their bid rejected earlier this month, the consortium released a joint statement on the London Stock Exchange announcing its withdrawal from the process, but reserving the right make another bid within the next six months.

The consortium, consisting of Providence, The Carlyle Group and The Blackstone Group, refused to better their 4 September offer of 450 pence per share despite the fact the company’s chairman, Derek Mapp, characterised it as “significantly undervaluing” the company.

In late June, Carlyle, Providence and Hellman & Friedman approached Informa with a proposal to acquire the company for 506 pence per share – an offer price which would have valued the company at £3.4 billion. However, due to funding difficulty the offer had to be cut by almost 10 percent.

Informa publishes more than 2,000 trade publications and organizes more than 10,000 conferences annually.