DISNEY TO MAKE LAST KEY PUBLISHING SALE.

Byline: Dave McNary Daily News Staff Writer

Walt Disney Co. agreed Wednesday to sell its Institutional Investor publications for $142 million, well below initial expectations of $200 million, to Euromoney Publications.

The deal marks the final major transaction in Disney's strategy, announced in January, to shed print assets outside its core entertainment business. The transaction will combine two high-profile operations - London-based Euromoney and New York-based Institutional Investor - that specialize in the world of high finance.

Euromoney had emerged this week as the leading potential buyer. Thomson Financial Publishing, Pearson PLC, the Economist and McGraw-Hill also were reported as possible bidders with Pearson offering $118 million before dropping out, according to analyst Porter Bibb of Ladenburg Thalmann.

Disney was forced to lower its original asking price of as much as $200 million as concerns emerged over Institutional Investor's 23 newsletters having lost market share in recent years to on-line services. ``Institutional Investor has missed the boat in terms of on-line operations and the development potential now is somewhat limited,'' Bibb said.

The operations have little overlap, Bibb added, since Euromoney has been mostly unable to penetrate the American market and Institutional Investor derives 73 percent of its sales from U.S. operations.

Disney acquired Institutional Investor early last year as part of its $19 billion buyout of Capital Cities/ABC. Bibb said Disney's efforts to integrate those assets into its own operations probably precluded making major strategic decisions on Institutional Investors operations.

Disney's key sales in publishing came in April with four newspapers fetching $1.65 billion and its Chilton trade magazines bringing in $447 million. It also recently sold Chatsworth-based NILS, a specialist in insurance law information, for an undisclosed price.

The entertainment giant still has a few magazines for sale but is keeping Women's Wear Daily, W and Los Angeles magazine. Bibb said the retained publications have a high enough profile to be attractive to Disney as vehicles for cross-promotion.

Analysts said Disney generally fared well in the asset sales. ``I think they got good prices,'' said Linda Bannister of Edward Jones. ``They weren't in a big hurry to sell. They can use the proceeds in areas where growth opportunities are more attractive.''

Institutional Investor was founded in 1967 and sold to Capital Cities in 1984 for a reported $72 million. The operations, which include a conference business, generated $74 million in revenues last year.

Euromoney's purchase will be financed by a $150 million medium-term bank facility from HSBC Holdings PLC. Shares in Euromoney, 63 percent owned by Daily Mail & General Trust, closed unchanged at 1,547.5 pence. Disney rose 93 cents to $78.875.