

Strategic acquirers look to have the upper hand in the drawn out auction of media company
The company has reiterated that it is still examining all options “including the sale or demerger of some of all of the constituent parts of the group”. However, it has indicated that potential bidders for its business to business (B2B) publishing division should consider including Emap plc in their offers.
There have been reports that
Emap has reported a 16% fall in first half pre-tax profits to £80m on sales down 6.2% to £408m. The consumer magazines saw sales drop 19%. This has not given financial buyers confidence. It is believed trade buyers will be able to pay more because of the synergies they could achieve.
Chairman Alun Cathcart denied that the credit crunch had created problems for private equity groups to agree financing for any proposals. However, he admitted the sale might take until 2008 – longer than originally envisaged.
There has been stronger private equity interest in Emap’s radio stations, such as Kiss and Magic FM.
Paul Bates, analyst at Charles Stanley, said; “Global are quite clearly the bookies’ favourite, after their purchase of Chrysalis Radio. They have good financial backing and the ability to make synergies with their first purchase.”
He added that private equity bidders did not have such a financial advantage. Vitruvian is thought to be backing Phil Riley, former boss of Chrysalis Radio. Bates said that Communicorp, which bought Emap’s Irish radio stations earlier this summer, was unlikely to make an offer.
The deadline for the next round in the auction is December 3. A serious bidder who was spurned could make an approach for
Bates said he thought a quoted radio company would be unlikely to enter the process. However,