Metal Bulletin spurns approach from Euromoney

by Daniel Farey-Jones, Brand Republic 21-Jul-06, 11:00

LONDON - Metal Bulletin has rejected a takeover offer from rival business-to-business publisher Euromoney Institutional Investor and has told its shareholders it wants to see through its proposed merger with Wilmington.

Metal Bulletin released a statement this morning confirming press speculation that it had been approached by Euromoney, which is 70%-owned by the Daily Mail & General Trust.

In the statement, the specialist commodities and finance publisher described the offer as "unsolicited" and "derisory".

It claims it consists of 75% in cash and 25% in new Euromoney shares and is valued at 340p a Metal Bulletin share based on yesterday's closing price.

The statement reads: "The board of Metal Bulletin considers the terms of this indicative takeover offer, which represents a premium of only 12.6% to Metal Bulletin's closing price on 20 July 2006 and is subject to various pre-conditions including an inducement fee payable by Metal Bulletin to Euromoney, to be derisory and has informed Euromoney that it does not propose to enter into a dialogue concerning the indicative offer."

Euromoney later issued its own statement, confirming the details of its offer and informing the market it is considering its position.

The board is still recommending shareholders vote for the merger with Wilmington at the extraordinary general meeting scheduled for August 2.

The two companies announced the merger plan in late June, saying it would create a group with £330m annual revenues, a well-balanced portfolio and the resources for further expansion.

Wilmingon focuses on the legal, health, music and construction publishing and events sectors.

Euromoney owns nearly 100 specialist international business titles, backed by a range of conferences, serving the finance, energy, aviation, pharmaceutical and law markets. Its 2005 revenues were £196.3m.

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