Incisive close to deal for Pearson's magazines

Incisive Media, the publisher, appears poised to acquire Investors Chronicle and the other business magazines put up for sale by Pearson.

A publisher of trade and consumer business titles, including Bloomberg Money, Your Mortgage and Investment Week, Incisive yesterday suspended trading in its shares in an apparent sign that it was close to announcing the acquisition. The other remaining contender for the Pearson magazines is a management buyout team led by Stephen Hill and backed by Permira, the venture capitalists. However, Mr Hill's bid, which was earlier in pole position and was briefly granted exclusive negotiation status in the auction process, being run by Lazard, is believed to have fallen behind in the bidding process.

The Pearson titles, which include The Banker and Financial Adviser, are likely to fetch about £70m in cash. It is thought that Incisive, advised by Investec, has its financing in place and could complete the transition within days.

It would be a transforming deal for Incisive, which is valued at just under £47m. It is thought Incisive would finance the acquisition with debt and a substantial equity issue. It was to prevent the company's shares dropping ahead of this expected open offer that led to the shares' suspension. However, Lazard was unwilling to grant Incisive exclusive status.

Incisive said: "Should the acquisition proceed, it would be classified as a reverse takeover."

The publishers Emap, Hollinger and Fairfax, and the private equity houses Hg Capital and Bridgepoint, also looked at the Pearson titles.