VNU, the Dutch market research company, is in talks to be bought by a consortium of leading private equity firms for as much as €7.3 billion (£5bn).
The suitors - Carlyle Group, Blackstone Group, Kohlberg Kravis Roberts & Co, Thomas H Lee Partners, AlpInvest Partners, Permira and Hellman & Friedman - have offered €28 to €28.50 a share, VNU said today.
The company had said last month that it had been approached by several interested parties. VNU shares closed at $28.25 on the Euronext Amsterdam Exchange on Friday.
Despite some analysts suggesting the price on offer is too low, VNU, which owns the Nielsen television ratings business, said it would hold talks with the group while evaluating its options.
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It added that while the bid was non-binding, it was “not continuing discussions with any other party.”
It said: “This proposal was made by this private equity consortium after several weeks of diligence and access to VNU management.
“There can be no assurance that these discussions will result in any specific transaction and, if so, at what price and with what conditions. VNU expects to be able to provide further information within three to four weeks.”
Analysts had expected a higher valuation for VNU in a range of €29.50 to €31 a share. VNU shares rose fell later to €28.03 in afternoon trade, down 0.8 per cent. The stock has gained more than 30 per cent since hitting a low in May.
VNU became a takeover target after investors forced it last year to abandon a multi-billion acquisition of IMS Health, the American healthcare data firm, and ousted Chief Executive Rob van den Bergh. The company has since promised to return €1 billion to shareholders. It is considering a share buyback, to start after March 8, as well as a special dividend payment.
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VNU posted sales of nearly €3.8 billion and net earnings of €163 million in 2004.
VNU provides companies with marketing information such as Nielsen’s ratings, and has more than half of its sales in the United States. It also runs trade fairs and as a publisher is best known for Billboard and Hollywood Reporter magazines.