Company of the week: Reed International
Sunday 11 April 1999
The owner of Lexis-Nexis has already been subject to bid speculation during its eight-month search for a chief executive. A takeover is more likely to become reality after Reed Elsevier said on Tuesday that its leading candidate withdrew from consideration and two senior directors resigned in protest.
"This company is in desperate need of a CEO," said David Adair, an analyst at HSBC Securities. "If there is a bidder out there, shareholders may prefer to have shares in something a lot bigger that assumes the Reed business."
The publisher, which has a market value of about $20bn, has disappointed investors by generating little earnings growth on flagging sales of scientific and legal publications and increased spending on electronic publishing. Hopes that a new CEO would replace the dual-board management structure had helped shares in the two parent companies recover from losses last year.
Mark Armour, Reed Elsevier's finance director, said the failure to hire the leading candidate, whom the company didn't name, "does not involve starting from scratch" with the search. Analysts estimated the search could take until the autumn.
"It will now be at least three months or more likely more than six months before a new CEO comes on board," Mike Hilton, an analyst at Dresdner Kleinwort Benson, said yesterday. "In the meantime, in the eyes of the market, the company is effectively rudderless."
The company may even have trouble hanging on to its current co-chairmen. It may have to offer an extra incentive to Herman Bruggink to stay as he is scheduled to leave next month.
- 1 Fifty Shades of Grey movie trailer released: First look at Jamie Dornan as Christian Grey
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 50 books for students to read this summer: From Ernest Hemingway to Gillian Flynn
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 Israel has discovered that it's no longer so easy to get away with murder in the age of social media
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Peaches Geldof cause of death: Socialite had taken fatal dose of heroin after years of addiction, inquest concludes
Peaches Geldof: Her final day – and her fatal decision
Students offered grants if they tweet pro-Israeli propaganda
Iraq crisis: Isis orders Mosul shop keepers to cover mannequins
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...
competitive: Progressive Recruitment: This really is a fantastic chance to joi...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...