VNU terminates planned merger with IMS health.

VNU (Amsterdam), a provider of consumer, marketing and media information and analysis, has agreed with IMS Health (Fairfield, CT) to terminate the planned acquisition of IMS for $7 billion in cash and stock. The termination of the proposed deal, announced in July, occurred after shareholders representing 48% of VNU stock said they would not support the acquisition under any circumstances. VNU has agreed to reimburse IMS $15 million of costs related to the failed purchase and an additional $45 million to IMS if VNU agrees to be acquired over the next 12 months. Also, IMS has agreed to pay VNU $15 million if it is purchased within the next 12 months.

VNU also said it will return 1 billion [euro], cash remaining from the sale of VNU's directories division in 2004, to shareholders who have demanded bigger returns and believe VNU should sell one of its divisions and return the cash to shareholders. IMS said it would buy back up to 10 million of its own shares in a buyback program.

In the wake of the deal's termination, VNU chairmam/ceo Rob van den Bergh will resign and the company will pursue a listing on the New York Stock Exchange "to raise the company's profile and expands its shareholder base," the company said. IMS Health has operations in over 100 countries and provides information and services to the pharmaceutical and healthcare industries. The company had 2004 revenues of about $1.4 billion.