Private equity firms resubmit Springer bids

Buyout firms TPG, EQT and a consortium of Carlyle Group and Providence have resubmitted their offers for a minority stake in Springer Science and Business Media, three people familiar with the matter said.

Candover and Cinven, owners of the German academic publisher, asked for the resubmission because second-round offers for up to 49% of the business fell short of their original €500m (US$702.4m) price target.

A banker working on the financing of the deal said bids had been submitted over €400m. Prior to resubmission, banking sources said bids ranged from €350m to €380m.

Springer was formed in 2003 when Candover and Cinven merged BertelsmannSpringer with Kluwer Academic Publishing. The two private equity firms took advantage of hot debt markets to recapitalize the company and pay themselves dividends in 2004, 2006 and 2007.

Springer could not be reached immediately for comment.

By Victoria Howley and Zaida Espana. Editing by Elaine Hardcastle