IMS Health 'Considering Sale'

According to reports, pharma market research giant IMS Health is in talks with several private equity firms regarding selling the company.

One source told the Wall Street Journal (WSJ) that IMS received several bids last week and if the Board is in favour, may make a decision by November.

The WSJ (www.wsj.com ) report stated that private equity firm TPG had submitted one offer, while Silver Lake and BC Partners had submitted a joint bid, although the firms have yet to verify the story.

Nielsen (formerly known as VNU) attempted to buy IMS Health in 2005, but abandoned the deal when shareholders claiming to represent 48% of its shares stated that they would not support the transaction under any circumstances.

The WSJ said that these recent offers are expected to provide IMS stockholders with a 30% premium on their shares, valuing the firm at around $3.5bn.

In July, IMS Health reported a 19% drop in Q2 profit to $62.9m from $77.7m a year earlier, and announced plans to shed a total of 850 staff, or 11% of its global workforce.

However, yesterday, shares in the Norwalk, Connecticut-based firm rose 21.6% to $17.84 following this news. The company is due to release its third quarter results this Thursday.

IMS Health, which was founded as Intercontinental Marketing Services in 1954, is online at www.imshealth.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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