Bain Capital may acquire Reed Elsevier arm for $1 billion
08 Dec 2008
US buy-out firm Bain Capital is likely to acquire Reed Business International, a unit of Reed Elsevier, publisher of the New Scientist, Variety and Estates Gazette, for around $1 billion (£680m).
Bain got into the lead after rival equity group Texas Pacific Group pulled out of the bidding.
But a sale is still in doubt with reports claiming that the Reed Elsevier management is not happy with some of the conditions attached to the Bain bid, including a complex earn-out structure for its key executives.
Reed Elsevier was hoping to raise around $1.8 billion from the sale when it announced in February that it was putting its trade magazines unit up for sale.
Reed Elsevier said it was in discussions with a consortium of financing banks.
Several other private equity firms such as Candover, Cinven, Advent International, Quadrangle and Providence Equity Partners had shown interest in the Reed Elsevier unit.