Informa shares fall after bid rejection
Shares in publishing company Informa fell 8.7 percent in early trade on Friday after it rejected a reduced takeover offer from a private equity consortium.
Global Radio increases bid for GCapInforma said on Thursday it had rejected the new offer of 450 pence because it significantly undervalued the group. It had previously received an approach in July of 506 pence.
A source familiar with the matter told Reuters on Thursday that the consortium of Carlyle Group, Providence Equity Partners and Blackstone was now no longer prepared to pay the original price.
Shares in Informa were down at 378.5 pence by 8:08 a.m. before they recovered slightly, to be down 6 percent at 389.5 pence.
Analysts at UBS said they thought it was highly probable the consortium could return with an improved offer, with 475 pence or above the level that major shareholders would consider.
Numis analysts agreed, but warned there could be significant share price downside if no deal was arranged.
"We believe 506p would definitely have secured a deal from the point of view of Informa shareholders and somewhere between these two prices (470-480p) could also deliver a deal," they said in a note to clients.
(Reporting by Kate Holton; editing by Rory Channing)
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