United Business Media has revealed it has decided not to buy Emap’s business-to-business operations.

The business media group was seen as the most likely buyer of the division, which is being sold alongside Emap’s consumer magazines and radio arms. However, Peter Bancroft, UBM’s spokesman, told Timesonline that the company has decided against an acquisition, without citing reasons.

Bidders for the business-to-business division that are through to the second round are understood to include private equity groups Apax Partners, Cinven, Providence and trade bidder Guardian Media Group.

With the division valued at about £1.3 billion, sources have questioned whether private equity groups could have financing issues in the current market. It is not known if there are any other trade bidders interested in the business-to-business arm.

Providence and Cinven are also understood to be through to the second round to buy the consumer magazines division, which is behind titles such as FHM, Grazia and Closer. Others believed to be through to the next stage for the consumer arm, worth about £700 million, include Hearst and Quadrangle, the investment group that earlier this year acquired Dennis Publishing's titles in the United States for $240 million. Exponent, the private equity house that made a bid just for Emap's specialist magazines, is also thought to be through.

Sources have said that Emap would like the sales, which are being handled by Citigroup and Lazard, to be completed by the end of the year. However, if financing does prove a problem, Emap would consider a demerger. The group is Britain's second-largest consumer magazines publisher by sales.

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