Specialist information provider Informa plc, UK, has announced that it has rejected an acquisition bid from a consortium of private equity (PE) firms comprising Providence Equity, the Carlyle Group and Blackstone Group. The consortium made a cash offer of 450 pence per share, which the Informa board rejected on the grounds that it significantly undervalues the company.
In June, the PE consortium, which then included Hellman & Friedman but not Blackstone, had made a higher offer at 506 pence per share. Hellman & Friedman has since walked away from the bid while Blackstone has entered the fray. If the proposed 506 pence deal had gone ahead, it would have been one of the world's largest private equity takeovers since the credit markets seized up last year.
Looking forward, the Informa board has expressed belief that the company's well balanced portfolio, a significant and resilient subscription based business and its broad geographic reach provide considerable protection from any single weaker economy or vertical market.
The nature of this portfolio is expected to enable Informa to take advantage quickly of growth opportunities in strong markets. The board has therefore expressed confidence about the group's prospects for the full year and confirmed that the company's current trading is in line with expectations.
