Jones Lang LaSalle
VNU to be bought for $8.9 billion
Decides bid for whole firm better than break-up
E-mail Print Disable live quotes By Steve Goldstein, MarketWatch
Last Update: 5:30 AM ET Mar 8, 2006
LONDON (MarketWatch) -- Dutch media group VNU N.V., which put itself on the block after failing to win shareholder support for its own deal, on Wednesday agreed to be bought by a consortium of firms for $8.9 billion.
VNU, the company that owns Nielsen Media Research and publishes Billboard magazine, said it's agreed to be bought for 7.5 billion euros ($8.9 billion) in cash, or 28.75 euros a share.
The buyer is a consortium of AlpInvest Partners, The Blackstone Group, The Carlyle Group, Hellman & Friedman, Kohlberg Kravis Roberts & Co. and Thomas H. Lee Partners.
Including assumed debt, the value of the VNU deal is 8.6 billion euros.
CEO Rob Van den Bergh, who previously had announced that he would leave the firm, will now quit upon the completion of the deal at the end of May.
VNU shares advanced 1.8% to 27.84 euros a share in Amsterdam morning trading.
The deal may have disappointed some, after a report in February's Wall Street Journal Europe that shareholders wanted the firm to be split into three.
But VNU said a break-up would be too risky, citing concerns over uncertain completion, loss of economies of scale, adverse tax effects, negative client reaction and distraction cost.
VNU will be kept together for at least 18 months.
"It's difficult to predict how shareholders will take it," said Van den Burgh. "At the end of the day, shareholders will have to come to a conclusion, but we came in with a very good result."
VNU had put itself on the block after failing to win backing of shareholders including Fidelity Investments, Templeton Global Advisers and Knight Vinke Asset Management for last year's $7 billion planned acquisition of IMS Health.
The company in January said it was in talks over a sale with the winning bidders as well as Permira Advisors, which eventually dropped out.
At that point, VNU said the consortium was interested in bidding between 28 euros and 28.50 euros for the firm.
VNU separately reported a 3% rise in earnings per share in 2005 to 1 euros a share, coming in ahead of its earlier guidance of 0.85 euros to 0.90 euros a share.
Earnings before interest, tax, depreciation and amortization rose 2% to 587 million euros on a 4% revenue rise to 3.46 billion euros.
The company said its cost-savings program may be accelerated under the private-equity firms.
Steve Goldstein is MarketWatch's London bureau chief.
VNU to be bought for $8.9 billion
Decides bid for whole firm better than break-up
E-mail Print Disable live quotes By Steve Goldstein, MarketWatch
Last Update: 5:30 AM ET Mar 8, 2006
LONDON (MarketWatch) -- Dutch media group VNU N.V., which put itself on the block after failing to win shareholder support for its own deal, on Wednesday agreed to be bought by a consortium of firms for $8.9 billion.
VNU, the company that owns Nielsen Media Research and publishes Billboard magazine, said it's agreed to be bought for 7.5 billion euros ($8.9 billion) in cash, or 28.75 euros a share.
The buyer is a consortium of AlpInvest Partners, The Blackstone Group, The Carlyle Group, Hellman & Friedman, Kohlberg Kravis Roberts & Co. and Thomas H. Lee Partners.
Including assumed debt, the value of the VNU deal is 8.6 billion euros.
CEO Rob Van den Bergh, who previously had announced that he would leave the firm, will now quit upon the completion of the deal at the end of May.
VNU shares advanced 1.8% to 27.84 euros a share in Amsterdam morning trading.
The deal may have disappointed some, after a report in February's Wall Street Journal Europe that shareholders wanted the firm to be split into three.
But VNU said a break-up would be too risky, citing concerns over uncertain completion, loss of economies of scale, adverse tax effects, negative client reaction and distraction cost.
VNU will be kept together for at least 18 months.
"It's difficult to predict how shareholders will take it," said Van den Burgh. "At the end of the day, shareholders will have to come to a conclusion, but we came in with a very good result."
VNU had put itself on the block after failing to win backing of shareholders including Fidelity Investments, Templeton Global Advisers and Knight Vinke Asset Management for last year's $7 billion planned acquisition of IMS Health.
The company in January said it was in talks over a sale with the winning bidders as well as Permira Advisors, which eventually dropped out.
At that point, VNU said the consortium was interested in bidding between 28 euros and 28.50 euros for the firm.
VNU separately reported a 3% rise in earnings per share in 2005 to 1 euros a share, coming in ahead of its earlier guidance of 0.85 euros to 0.90 euros a share.
Earnings before interest, tax, depreciation and amortization rose 2% to 587 million euros on a 4% revenue rise to 3.46 billion euros.
The company said its cost-savings program may be accelerated under the private-equity firms.
Steve Goldstein is MarketWatch's London bureau chief.
posted by Jones Lang LaSalle NJ News Blog at 10:08 AM
<< Home