Nielsen 'to Recruit Bankers for IPO'

Nielsen is said to be preparing to trade as a public company, inviting a number of investment banks to underwrite an initial public offering (IPO) which could be worth up to $21bn.

According to a report in yesterday's Financial Times, the firm will begin to 'audition' banks next month for what the paper describes as 'one of the largest US initial public offerings in recent years'.

Nielsen, which was founded by Arthur C. Nielsen in 1923, was acquired by Dun & Bradstreet in 1984, and then split into two separate companies: TV ratings arm Nielsen Media Research and consumer shopping and box office trends specialist AC Nielsen. In 1999, Dutch publisher VNU acquired Nielsen Media Research, and in 2001, it brought both parts of the business back together under the Nielsen umbrella.

Nielsen was taken private in a $10bn buyout in 2006, by six private equity firms: Alpinvest, Blackstone, Carlyle, Hellman & Friedman, Kohlberg Kravis Roberts, and Thomas H Lee.

The forthcoming IPO offering would reportedly value the company's equity and debt at up to $21bn, based on the expectation that the firm will be valued at 11 to 13 times its EBITDA, which could be $1.6bn in 2010. The deal is likely to repay debt, while providing the firm's owners with equity. Reports are unclear on how much of the firm the consortium plans to sell, but it is thought it could keep a majority stake and sell the rest in stages.

Nielsen, which will report its first quarter results on Friday, has thus far declined to comment.

Web site: www.nielsen.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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