The private equity consortium is no longer prepared to pay as much for the UK firm
Crumbling markets have led the private equity consortium circling Informa to slash its offer for the publisher, as another potential bidder dropped out of the race.
The group led by Providence Equity Partners made an indicative offer of 506p a share for the PR Week publisher in June, in a deal worth £3.4bn.
But it is understood that the consortium is now only prepared to pay between 440p to 450p a share for the company on the basis that market conditions have deteriorated since it first made its offer in June.
Shares in Informa have largely traded below the indicative offer of 506p following concerns that the consortium would not be able to raise enough funds in the current market to finance the deal.
However, its bid has been bolstered after its main competition dropped out of the race. The Dubai World Trade Centre, which is backed by the emirate, dropped out of a rival consortium with buyout firm Blackstone after the two failed to agree on a price. Blackstone has now joined the Providence consortium, which also includes Carlyle Group.
Hellman & Friedman, an original member of the Providence consortium, decided to walk away from the deal during the due diligence process. This was also due to concerns about the price being offered for Informa.
However, it is understood to be keeping a close eye on negotiations with a view to re-joining the group if conditions materially change.