Speculative bid interest lifts Emap shares
Tuesday, 25 December 2007
LONDON, Dec 24 (Reuters): Shares in media group Emap jumped briefly Monday on speculative interest as some investors took the view that a counter-bidder may pitch for the company's specialist publishing and conferences assets.
Several media analysts said the possibility of a counter offer should not be ruled out although joint bidders Guardian Media Group and Apax Partners have moved to strengthen their position by buying 19.40 per cent of Emap's shares.
One leading fund manager in Emap said a counterbid was extremely unlikely given Emap has secured agreed deals and the Christmas break would make it that much harder to get relevant dealmakers and advisers together again.
"There is an outside chance, perhaps around five per cent, that there could be a counter offer," said Panmure Gordon media analyst Alex DeGroote.
Shortly before midday, Emap shares were unchanged at 925 pence, having earlier surged as high as 949 pence. Although trading activity across the stock market was thin ahead of the Christmas break, around 956,000 shares had changed hands, which represents nearly half of the group's average daily trading volume.
The speculative interest in Emap's shares had lifted them above the 931 pence total cash payment shareholders are in line to receive once the company's break-up has been carried out.
In a surprise move Friday, London-based Emap said it had agreed to sell its specialist magazines and events business to privately owned Guardian Media Group and private equity firm Apax Partners for around 1.0 billion pounds (US$1.98 billion).
On Monday, the two groups said they had each bought 20.97 million Emap shares Friday for a combined 19.40 per cent stake.
Emap's business-to-business division publishes a wide range of titles such as Broadcast, the Journal of Wound Care and Fleet News while its leading events include the annual Cannes Lions advertising festival.
The B2B business disposal marked a turnaround from Emap's position on December 7 when it announced the sale of its consumer magazines and radio businesses to German publisher Bauer for 1.14 billion pounds.
Several media analysts said the possibility of a counter offer should not be ruled out although joint bidders Guardian Media Group and Apax Partners have moved to strengthen their position by buying 19.40 per cent of Emap's shares.
One leading fund manager in Emap said a counterbid was extremely unlikely given Emap has secured agreed deals and the Christmas break would make it that much harder to get relevant dealmakers and advisers together again.
"There is an outside chance, perhaps around five per cent, that there could be a counter offer," said Panmure Gordon media analyst Alex DeGroote.
Shortly before midday, Emap shares were unchanged at 925 pence, having earlier surged as high as 949 pence. Although trading activity across the stock market was thin ahead of the Christmas break, around 956,000 shares had changed hands, which represents nearly half of the group's average daily trading volume.
The speculative interest in Emap's shares had lifted them above the 931 pence total cash payment shareholders are in line to receive once the company's break-up has been carried out.
In a surprise move Friday, London-based Emap said it had agreed to sell its specialist magazines and events business to privately owned Guardian Media Group and private equity firm Apax Partners for around 1.0 billion pounds (US$1.98 billion).
On Monday, the two groups said they had each bought 20.97 million Emap shares Friday for a combined 19.40 per cent stake.
Emap's business-to-business division publishes a wide range of titles such as Broadcast, the Journal of Wound Care and Fleet News while its leading events include the annual Cannes Lions advertising festival.
The B2B business disposal marked a turnaround from Emap's position on December 7 when it announced the sale of its consumer magazines and radio businesses to German publisher Bauer for 1.14 billion pounds.