Business Weekly - Cambridge, UK

Emap's B2B division may yet have company

 Emap has been trying to find a buyer for its three businesses; radio, consumer magazines and B2B publications since July, and announced on Friday that it has sold two of the divisions to German media giant, Bauer for £1.14bn.

But stories emerged over the weekend of discontent amongst shareholders, some of which expressed their intention to attempt a veto of the sale at the EGM planned for next month, despite the group's intended return of £1bn, or around 460p per share.

Reports said that shareholders were unhappy that the company had failed to find a home for its its exhibitions and information arm, and may plan to vote against the sale, which is dependent upon acceptance by shareholders.

An investor told the Sunday Times newspaper that: "If they think this has been successful, then we have a different view. This has got to be approved. If we start talking to all the other shareholders we have got to think about whether we vote this thing down."

The reports cast some considerable doubt over whether the group will manage the sale, which has been five months in the making.

The sale leaves Emap's local office in Peterborough in doubt, as a number of consumer magazines, including Classic Cars and Angling Times, are published from the region, but BW has yet to receive comment from the firm on its future.

Along with the negative sentiment expressed by Emap's shareholders, the sale also has to contend with a number of other factors, including the German and Austrian competition clearance, and the completed sale of Emap's Irish radio stations, proposed in August.

Should the sale go through, the company's remaining consumer business will leave the new group with 32 per cent of the group's 2007 estimated revenues and 42 per cent of its normalised operating profit, according to analysts.