Informa shares fall on Springer takeover talk

Informa said it was talking to Springer’s principal shareholders, Cinven and Candover, about a possible deal and that it was currently looking at Springer’s books in order decide whether or not to put in an offer.

While stressing that a deal was not certain, Informa said that a merger “would bring together two highly respected and profitable academic publishers that would be positioned to take advantage of the opportunities in their core fields of Scientific, Technical and Medical (STM), and Humanities and Social Sciences (HSS), respectively”.

Informa also said that a deal would “generate significant value” for its shareholders.

The company said in a statement, “The combination would be expected to generate significant synergy benefits from rationalisation of the combined cost base plus improved marketing and operating efficiencies. The enhanced journal and book portfolio, together with synergies, would drive sustainable growth and value for Informa's shareholders. The Springer business, like Informa, has strong cash generation and resilience and would thereby enhance the Group's cash and earnings visibility.”

Springer Science and Business Media is based in Germany, while Informa is relocating from the UK to Switzerland in order to enjoy lower taxes.

By 10:03 am shares in Informa were down 5.83 per cent to 293.80 pence per share.