Did someone forget to tell the market?
Emap on Friday said that it had received “various unsolicited proposals” for part of the publishing group and would be undertaking a review of the business’ structure. Citi and Lazard are advising Emap.
The offers must have flooded in since the company in May dismissed takeover talk, with Alun Cathcart, chairman, denying there had been bid approaches since the sudden departure of chief executive Tom Moloney, the previous week. He added that there would be no break-up of the group, despite the start of strategic reviews of some businesses.
Emap has since agreed the sale of its French trade exhibitions business, its Irish radio stations and sold its music TV channels into a joint venture with Channel 4.
But Friday’s announcement went further, saying that all options were under consideration, including a “sale or demerger of some or all of its constituent businesses.”
Panmure’s analyst commented that it was the “world’s worst kept secret” that a break up of Emap was underway. “Frankly this is no surprise to us at all, but it does firmly indicate the company is in play,” he added, maintaining his ‘buy’ recommendation and target price of 1,000p.
Analysts at Bridgewell noted that the plan at Emap previously was to find a new chief executive and then let him or her decide what should be done with the business. Now it appears Emap will look for a new CEO as it also chews over whether to break up the business.
Bet that’ll have them queueing round the block.
