Media group Informa (INF) confirms the details of its £3.9bn bid for rival UBM (UBM) this morning as both companies also issue solid trading updates. Informa ticks up 0.2% to 688.6p and UBM advances 3.5% to 899.5p.

The main new development revealed this morning are more substantial than expected annual cost savings from the combination of £60m (most analysts had pencilled in £50m). But it remains to be seen if it is enough to convince the doubters who believe Informa is overpaying for UBM.

Scepticism over the deal, intended to create a global leader in business-to-business events, has been reflected in an 8% fall in Informa’s shares since it was first announced on 17 January.

This fall in the share price translates into a lower per share bid for UBM of 907p based on the terms of 1.083 Informa shares plus 163p in cash (on 15 January this equated to 971p).

Liberum media analyst Ian Whittaker reiterates his ‘buy’ recommendation on Informa and 855p price target. He says: ‘Informa has published its bid document for UBM, with the main highlight that it is targeting at least £60m of annual synergies from the bid for UBM, higher than market expectations.

‘It has also published a trading update which is line with expectations but the target of at least 3.5% underlying revenue growth for 2018 is positive and better than our 2.8% forecast.’

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Issue Date: 30 Jan 2018