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Private Equity eyes Informa

13.05.08

Publishing and events business group Informa, the parent company of Taylor & Francis, is being circled by private equity groups, reports the Times.

Carlyle and Apax are among those considering a bid for the group, although "no approaches are understood to have been made".

Informa's shares have fallen almost 40% since it announced the acquisition of Datamonitor for £502million in May last year amid widespread de-rating of media stocks amid fears of an economic slowdown.

Some analysts have raised concerns about Informa being hit by its high debt levels after the Datamonitor acquisition and partial dependence on the financial services sector. The Times writes that private equity groups are understood to be looking closely at the company in the hope that debt markets will ease in the near future. The group's high debt levels could make a bid challenging in present market conditions.

“I expect it to be a target once the market changes,” one banking source said.

Times

Financial Media Informa Taylor & Francis

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