NEWS27 May 2010

Infogroup sale: Opposition mounts as investor buys more shares

M&A North America

US— Hotchkis & Wiley, a leading opponent of the private equity takeover of database marketing and research firm Infogroup, has again increased its position in the company – this time taking its shareholding to 8.5%.

Hotchkis, Infogroup’s second-largest shareholder, increased its stake from 7.3% through a series of share purchases dating back to 7 May. It has been building up its investment in the company since 19 April, when its shareholding stood at 5.7%.

Infogroup has agreed a sale to private equity firm CCMP Capital, valuing the business at $460m or $8 a share. Hotchkis, along with another shareholder, Stonerise Capital, has argued against the deal, believing that “under the leadership of [CEO] Bill Fairfield’s team the fundamental value of Infogroup is well in excess of $12 per share”.

Hotchkis paid under $8 per share in its recent transactions.

Infogroup shareholders have yet to vote on the takeover, but it is known to have the backing of the Infogroup board and founder and former CEO Vin Gupta, who owns 36% of the company.