LONDON (ShareCast) - Shares in Informa rallied after the business publisher confirmed it has received an approach from fellow media and exhibitions group United Business Media (UBM) about a possible all-share merger.
Informa said it is considering the proposal and is in preliminary discussions with UBM. “There can be no certainty that any transaction will take place,” it added.
Shares in the group jumped over 11%, giving it a market capitalisation of £1.83bn, while UBM shares rose 13p, or 2.15%, to 618.5p. It is also thought that the bid could spark rival offers.
Analysts suggest that Informa's chief executive Peter Rigby could become executive chairman of the joint company, while UBM BOSS David Levin could be chief executive.
The FTSE 250 company confirmed the approach after Sunday newspapers revealed the media companies are considering a tie-up to create a £3bn FTSE 100 business information empire.
Property developer Quintain Estates slides as Merrill Lynch cuts its price target for the stock from 350p to 299p and maintains its “underperform” rating. Meanwhile cash call fears suppress demand for housebuilder Barratt Developments and directory group Yell.
FTSE 250 - Risers Informa (INF) 434.00p +12.36%
Petrofac Ld (PFC) 683.50p +7.13%
Drax Group (DRX) 704.00p +5.55%
Venture Production (VPC) 923.00p +3.13%
Unite Group (UTG) 283.25p +2.91%
Hochschild Mining (HOC) 415.00p +2.47%
SSL International (SSL) 492.00p +2.29%
Benfield Group (BFD) 265.00p +2.22%
Greggs (GRG) 3,932.00p +2.10%
Spirent Communications (SPT) 67.00p +1.90%
8.50p
