Informa slumps despite private equity interest

By Kate Holton

LONDON (Reuters) - A private equity consortium led by Providence is behind the latest bid approach to British media group Informa (INF.L), media reports said on Wednesday.

The Times newspaper, without citing sources, said that private equity firm Carlyle was part of the consortium and that talks were at an early stage.

Analysts also expect private equity groups Apax, Candover and Cinven to be interested in Informa as they already have publishing assets which could provide synergies.

Informa shares were down 7.4 percent at 437 pence at 8:40 a.m.

Numis analyst Paul Richards said Informa shares had risen sharply since details of a possible merger with United Business Media (UBM.L) were made public and said the fall on Wednesday reflected concerns that private equity would struggle to secure a deal in the current credit markets.

Informa said on Tuesday it had received a further approach from a third party which it did not identify, and that its talks over a possible merger with UBM had ended. UBM shares were up 0.8 percent on Wednesday.

The Financial Times said Providence had been in informal talks with Informa but that no offer had been made and no bid was likely above 500 pence a share.

Numis said a private equity bid would need to be pitched around 500 pence to succeed, representing a 30 percent premium on the price before the merger talks with UBM were announced.