VNU shares up on report of access to books

Dutch publisher VNU, the world's biggest market research company, will give potential private equity bidders limited access to…

Dutch publisher VNU, the world's biggest market research company, will give potential private equity bidders limited access to its books, the Financial Times has reported.

Shares in the media concern, which became a takeover target after its failed bid last year to buy a US healthcare data company, rose as much as 4.7 per cent in early trade on Euronext Amsterdam.

"As VNU seems to be willing to open up the books, chances of a bid on the whole company have further increased," said Rabo Securities analyst Hans Slob in a research note.

VNU officials were not immediately available to comment on reports that it would be opening its books to bidders.

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At least two groups of private equity firms are considering takeover bids for VNU, which owns the Nielsen TV ratings business and has a market capitalisation of €7.16 billion, sources have said.

A group that includes buy-out firms Blackstone Group, Apax Partners, Carlyle Group, Kohlberg Kravis Roberts & Co., Permira Advisers, Thomas H. Lee Partners, Alpinvest Partners NV and possibly other firms, is interested, one source told Reuters.

Bain Capital, Texas Pacific Group and Warburg Pincus are also considering an offer, the source said.

Many analysts say VNU will most likely be valued at around €30 to €31 per share, which gives a price-earnings ratio of 19 to 20 times projected 2006 profit and a premium of 5 to 10 per cent over today's prices.

VNU is currently valued at 18 times 2006 earnings.

That makes VNU one of the most highly valued companies on the DJ Stoxx Media index.

VNU shares are up over 18 percent from mid-2005 when it was in talks to acquire US healthcare data company IMS Health. .

The deal was scrapped last November, following opposition by shareholders who held a significant number of VNU shares.

VNU shareholders said they would not support the deal under any circumstances as it was too costly and would dilute their holdings too much.

IMS Health is also being circled by private equity firms, sources familiar with the situation told Reuters last month, but interest from the firms is only preliminary.