Reed and Blenheim close to agreement on pounds 450m bid
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Your support makes all the difference.A pounds 450m bid from Reed Elsevier for Blenheim, the exhibitions company, could be agreed as early as this week, sources close to the Anglo- Dutch publishing giant said over the weekend.
"Things are definitely moving, although we have taken the weekend off to recharge our batteries," a senior source disclosed. Reed is thought to be offering about 480p a share for the exhibitions company, which last week unveiled sharply higher interim pre-tax profits. The shares closed on Friday at 413.5p, well short of their high of 468p, reached at the height of takeover speculation.
But a source close to Blenheim cautioned yesterday that Reed was not the only bidder still in the frame, although she declined to name other parties. It is believed that United News & Media, Lord Hollick's newspaper and television giant, could still be interested, despite having suspended talks late in the summer, following disagreements over the amount of confidential information Blenheim was willing to provide to the would-be suitor.
Talks between Blenheim's advisers and Reed were scheduled to resume this morning. According to the Blenheim camp, there might be "other parties in other rooms" discussing a possible bid.
Analysts stressed over the weekend that UNM was unlikely to stand by and let Reed take the prize. Blenheim, which has had a rocky few years since the recession, is poised to benefit from an upturn in the exhibitions business, and is looking ahead to a very strong schedule next year.
"This is a good time for buyers to be looking at Blenheim," said one analyst.
The company would be a good fit for either UNM or Reed. Analysts discounted suggestions that other buyers - either from the Continent or the US - might be in the wings.
The on-again, off-again bid saga has frustrated management on all sides and annoyed shareholders, who have seen their shares fluctuate widely in value as bid talks hotted up and then cooled off in rapid succession.
Reed insiders accused Blenheim management of being "difficult to deal with" and suggested a deal could be done quickly with more co-operation.
Most recently, Reed has been putting pressure on Neville Buch, the chairman, and other directors who between them control 25 per cent of the shares. Another large block is controlled by the French utility company Generale des Eaux. Reed had hoped to do a deal last week, to coincide with the release of Blenheim's interims, but there are still disagreements over the precise form of the offer and the price.
Since Blenheim became an open bid target three months ago, its management has been holding out for a price well above 500p a share. United News & Media, which held talks for several weeks in the summer, wanted to go no higher than 450p.
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