(Reuters) – Britain’s Informa is in talks a few deal to purchase occasions organiser UBM for greater than three billion kilos, rekindling plans from nearly a decade in the past to create a serious business media and conventions group.
The two firms stated in a joint assertion on Tuesday that they had been in discussions a few share-and-cash provide, whereas they may announce a attainable worth as quickly as Wednesday, two individuals near the scenario stated.
A takeover would worth UBM at greater than its present market capitalisation of three.1 billion kilos, the sources advised Reuters. The two firms explored the potential for an all-share merger in 2008, however it didn’t go forward.
The most up-to-date talks began final 12 months after Informa, which has a valuation of 6.1 billion kilos, approached its smaller rival UBM a few attainable deal, one of many sources added.
The firms had been pressured to place out an announcement disclosing their talks on Tuesday following actions in UBM’s share worth.
UBM’s shares closed up greater than 5 %, whereas Informa’s stock remained largely unchanged.
“There can be no certainty that any firm offer will be made or as to the terms on which any offer might be made,” the businesses stated in an announcement. Neither company responded instantly to requests for remark.
Under Takeover Panel guidelines, Informa has till 1700 GMT on Feb. 13 to make a suggestion or stroll away for not less than six months.
Credit Suisse and JPMorgan Cazenove are advising UBM, whereas Centerview Partners, Bank of America Merrill Lynch and Barclays are working with Informa.
Reporting by Justin George Varghese in Bengaluru and Ben Martin in London; enhancing by Jane Merriman and Alexander Smith