Libraries Urge Justice Departmen to Block Cinven and Candover Purchase of BertelsmannSpringer

["John Cox" <John.E.Cox@btinternet.com>]

This appears to me to be a rush to judgement without any thoughtful
analysis of the impact of the creation of a group with the resources to
become a significant competitor to the otherwise sole 'super power' in
journal publishing.

Cinven and Candover are private equity companies.  Their investment in our
industry is new money.  It creates a new group that otherwise would have
been acquired, piece by piece, by existing publishing giants.  I know
Cinven from their time as principal owner of Routledge, of which I was a
director in the mid-1990s.  Their stewardship of Routledge was marked by
financial insight and by allowing the professional publishing management
simply to get on with the job of publishing books and journals.  They
offered advice, but they were always willing to listen and be corrected.  
They were a model owner.  And the same individuals are involved with
Kluwer/Bertelsmann Springer.

The process of concentration in scholarly publishing in the last ten years
has been incestuous.  Publishers have bought other publishers.  This
acquisition represents new investment and creates diversity which would
not exist if one of the other bidders had succeeded.

John Cox

John Cox Associates
Rookwood, Bradden
TOWCESTER, Northants NN12 8ED
United Kingdom
Tel: +44 (0) 1327 860949
Fax: +44 (0) 1327 861184
E-mail: John.E.Cox@btinternet.com

----- Original Message -----
From: "Ann Okerson" <ann.okerson@yale.edu>
To: <liblicense-l@lists.yale.edu>
Sent: 2 June 2003 1:48 am
Subject: Libraries Urge Justice Departmen to Block Cinven and Candover
Purchase of BertelsmannSpringer


> Of possible interest to the readers of this list.  Some industry analysts
> have opined that having two very large competitiors in the STM publishing
> business will mean more competition; the approach below suggests that two
> players would not, in fact, compete.  Your thoughts?  The Moderators
>
> ---------- Forwarded message ----------
> From: Judith Matz
> Sent: 6/1/03 11:13 AM
> Subject: ARL Announces: Libraries Urge Justice Department to
> Block Cinven and  Candover Purchase of BertelsmannSpringer
>
> For Immediate Release-May 30, 2003
>
> For more information, contact:
> Dawn Boeckermann, Metropolitan Group
> (503) 223-3299 or dboeckermann@metgroup.com
>
> LIBRARIES URGE JUSTICE DEPARTMENT TO BLOCK CINVEN AND CANDOVER PURCHASE
> OF BERTELSMANNSPRINGER
>
> Publisher Mergers Threaten Access to Crucial Research
>
> Washington, D.C. - The Information Access Alliance, a group of six library
> organizations, is urging the U.S. Department of Justice to block Cinven
> and Candover's proposed purchase of BertelsmannSpringer. The Alliance is
> concerned that this transaction will bring about a reduction in access to
> critical research information.

[SNIP]