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KVAM Backs its VNU Plan with Share Purchase Offer
Activist VNU shareholder KVAM has indicated that it is prepared to buy a further Euros 233m of shares to back its alternative plan for a partial sell-off of the media and research giant. The commitment is subject to approval of its own 'Plan B' and rejection of the 28.75 per share Valcon bid.
KVAM currently owns 1.2% of VNU.
The Wall Street Journal quoted Eric Knight, Chairman of KVAM (Knight Vinke Asset Management), as saying he will back the KVAM proposal, which aims to restructure VNU, with his own money. Fears that VNU stock will fall fast if the Valcon bid fails may also be allayed by such a commitment.
KVAM issued a statement today clarifying certain points. It confirms that plans are being developed for a partial offer for 30% of VNU's common shares, and for reconstituting the Supervisory Board and management. The plan would see a substantial stock buyback by VNU and a partial offer by a new company to be formed by VNU shareholders and others ('Newco'). The statement adds that KVAM 'and its investing partners' would be 'capable of underwriting Newco's equity in the event that VNU's other existing shareholders were not interested in participating', but, crucially, would only commit to doing so if the entire Plan is approved and implemented.
VNU has urged shareholders to accept the Valcon Offer and given a detailed rebuttal of KVAM's criticisms and 'flawed' plan. Shareholders representing 95% of VNU shares must approve the deal by the deadline of May 5th. VNU is online at www.vnu.com .
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