ANGLO-DUTCH media group Reed Elsevier has rejected an audacious private-equity approach for its business publishing arm, home to the New Scientist magazine and the film industry bible Variety, writes Mark Kleinman.

The informal approach, thought to have been led by Cinven, was made earlier this year and was rejected by Sir Crispin Davis, the chief executive of Reed Elsevier. Goldman Sachs is understood to have been advising Cinven on the potential offer.

Cinven and its partners, which may have included Candover, the rival buyout firm, are said by sources close to the situation to remain keen on the assets of Reed Business, which analysts estimate could be worth more than £2 billion.

Reed Business, which boasts an operating profit of $356m (£188m) on revenue of $2.02 billion, includes a broad portfolio of directories and exhibitions assets as well as its high-profile magazine titles.

BACKGROUND

• Reed Elsevier to quit arms exhibitions

• Cinven eyes Reed assets

• Reed evolves to go with the flow

• Reed Elsevier to sell education arm after poor performance

• Pearson buys Reed text book arm for £425m

Reed sale shows faith in internet

Companies are not talking about future earnings online, they are making money from the internet now, Reed's decision expresses this

Related Internet Links

• Reed Elsevier company information

• Reed Elsevier share price chart

• Reed Elsevier forecast

Davis is understood to be reluctant to part with any of Reed’s key assets, but could sanction a demerger of Reed Business.

Cinven bought IPC Media, the magazine publisher, from Reed in 1998.

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