Deadline is looming for Emap bidders

LONDON - Bids for Emap must be in by early October, according to an information memorandum distributed earlier this month.

Only cash offers for the radio, magazine and B2B group are being considered.
The tight turnaround does not reflect fears that the global credit crunch will put off private equity groups, insiders at the media giant said.

However, it expects fewer bids on the table than the 30 expressions of interest shown when the break-up was announced this summer.
Predictions that the sale will raise £2.5bn, 40% higher than its pre-sale capitalisation of £1.7bn, look optimistic following the credit squeeze. Market commentators expect a more realistic price to offer 20% premium.
No concrete timetable is mentioned in the information memorandum, but Emap hopes to have new owners decided upon by the start of 2008.
A break-up of the group seems inevitable, although Emap has signalled it will take any divisions off the market if they fail to attract high enough bids.
One informed source said: “This is not going to be a fire sale.”
Names in the hat for the three divisions include Gruner & Jahr and Silvio Berlusconi’s Mondadori for the magazine business – which was predicted to raise up to £700m before the current crisis in the markets – and Guardian Media and Global Radio for the radio interests, including Kiss FM, expected to raise up to £300m.

Danuta Kean Media Week