A group of six private equity firms has offered a EUR 7.5 billion cash bid ($8.93 billion) to acquire VNU NV, the Dutch-owned company that owns the Nielson TV ratings business, but the deal may be in danger as investors vow to block the deal, Reuters reports.
Disgruntled shareholders have before botched a big deal, fighting hard against VNUs plan to buy US-based healthcare data firm IMS Health a firestorm that lead to the resignation of CEO Rob van de Bergh.
Now shareholders are displeased with the private equity takeover plan.
Under the terms of agreement, the private equity group agreed to offer EUR28.75 cash (US$34.3 cash) for each VNU NV share sought. The result of the transaction will be additional financial backing for VNU NV’s long-term strategic growth, additional expansion into developing markets and technology and service innovation for the company.
Fund management giant Fidelity International said it was unlikely to support the offer by six firms including Kohlberg Kravis Roberts & Co. and Blackstone Group, the LA Times reported. Fidelity’s global funds own about 15% of VNU, and the offer requires support from 95% of shareholders for approval.
Two of the private equity firms originally part of the buyout group — Apax and Permira have already backed out.
Another option VNU considered is to sell the company in parts, which some investors still believe is the best option, but has found no takers in that it would cost hundreds of millions of euros in lost tax.
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