VNU terminates planned merger with IMS health.
VNU VNU Volontaires des Nations Unies (French)
VNU Verenigde Nederlandse Uitgeversbedrijven (Dutch)
VNU Virtual Network User (Amsterdam), a provider of consumer, marketing and media information and analysis, has agreed with IMS Health IMS Health (NYSE: RX) is an international consulting and data services company that supplies the pharmaceutical industry with sales data and consulting services. IMS Health was founded in 1954 by Bill Frohlich and David Dubow. (Fairfield, CT) to terminate the planned acquisition of IMS (1) See IP Multimedia Subsystem.
(2) (Information Management System) An early IBM hierarchical DBMS for IBM mainframes. IMS was widely implemented throughout the 1970s under MVS and continues to be used under z/OS. 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 re·im·burse
tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es
1. To repay (money spent); refund.
2. To pay back or compensate (another party) for money spent or losses incurred. 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 New York Stock Exchange (NYSE)
World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. "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.