Informa/Springer

["Okerson, Ann" <ann.okerson@yale.edu>]

See below for a news report on the end of the Informa/Springer 
talks. Another report suggests that Springer will still have its 
debt problems, but Informa is in pretty good shape.

The Moderator

LONDON (Dow Jones)--U.K.-based publisher and events organizer 
Informa PLC (INF.LN) said Tuesday it has broken off talks 
regarding a potential acquisition of Germany's Springer Science 
and Business Media.

"Whilst there is clear strategic logic in combining Springer and 
Informa, the board has concluded after detailed consideration 
that the current environment is not conducive to making such a 
significant acquisition in the timescale required by the 
vendors," Informa said.

Earlier this year Candover and Cinven Group Ltd., joint owners of 
Springer Science, hired UBS AG (UBS) and Goldman Sachs (GS) to 
raise some EUR500 million by selling a stake in the company as a 
way to cut the company's heavy debt load. Talks dragged on for 
several months with various interested parties, but with no 
result, and the company's owners considered putting the whole 
company on the block.

Just one week ago Informa, which publishes maritime newspaper 
Lloyd's List and Routledge academic books, confirmed that it was 
in talks about buying the company, more than a year after the 
U.K.-based publisher and events organizer aborted merger talks 
with peer United Business Media Ltd. (UBM.LN).

At the time analysts estimated Springer's debt to be around 
EUR2.1 billion.

"This is just one move too far for shareholders," said Numis 
analyst Lorna Tilbian on Tuesday.

"After a capital raising in May it is too soon to come back to 
shareholders," she added. Numis has a 'buy' recommendation on 
Informa.

Her comments echo those of analysts last week who said that while 
a merger of the two publishers made strategic and financial sense 
market concerns over financing and increased debt would weigh on 
the stock in the shortterm.

Informa shares at close were up 10.4%, or 29 pence, at 306 pence, 
compared with 2.21% rise in the broader London market. Informa 
shares have risen 87% over the last year.

In its statement Tuesday Informa said its trading remains in line 
with management expectations for the full year.

Cinven and Candover have owned Springer for more than six years, 
when it was purchased as BertelsmannSpringer, the academic 
publishing arm of Germany's Bertelsmann AG for EUR1.05 billion in 
May 2003. The venture capitalists merged the German company with 
their Dutch group, Kluwer Academic Publishers, and renamed it as 
Springer Science and Business Media.

The group is the second-largest academic publisher behind 
Elsevier,

In its statement Tuesday Informa said its trading remains in line 
with management expectations for the full year.

Cinven and Candover have owned Springer for more than six years, 
when it was purchased as BertelsmannSpringer, the academic 
publishing arm of Germany's Bertelsmann AG for EUR1.05 billion in 
May 2003. The venture capitalists merged the German company with 
their Dutch group, Kluwer Academic Publishers, and renamed it as 
Springer Science and Business Media.

The group is the second-largest academic publisher behind 
Elsevier.