Bidders raise questions over Emap B2B price tag

by Daniel Farey-Jones, Brand Republic 26-Nov-07, 10:35

LONDON - The sale of Emap's business-to-business division may fetch less than its £1.3bn price tag because of unforeseen expenses, according to a report.

The Sunday Telegraph has reported that bidders are warning they face increased costs of up to £100m if they take on the responsibilities of Emap plc, as Emap recently suggested it would like them to.

Emap said if it sells off its other two divisions, consumer magazines and radio, it would prefer bidders for the largest division, business-to-business media, to acquire the parent company.

This makes the new owners of the company liable for any unforeseen costs to the two former divisions, such as tax bills and guarantees on leases.

There are three teams of bidders going for Emap's B2B division: Apax and Guardian Media Group; Candover and Cinven; and Providence and Permira.

Reed Elsevier has also been mentioned as a possible bidder for Emap's B2B titles, which include Broadcast, Nursing Times and Screen International.