UBM receives an approach from Informa

UK media firm, Informa, has confirmed it is considering an all-share offer from its rival, United Business Media (UBM). However, there is no guarantee that a deal will take place.

UBM said that it confirms that discussions, which are at an early stage, are taking place, regarding the commercial merits of an all-share merger.

Following the news, shares in Informa, the owner of shipping publication Lloyds List, increased by more than 15% while shares in UBM rose 2.1%.

The deteriorating economic climate is prompting media firms to consolidate. The deal between Informa and UBM would form a publishing empire with a value of £3.4 billion.

Informa also has a large conference business and owns data analysis firm Datamonitor, which it purchased last year. It publishes titles including International Freight Weekly.

UBM has a workforce of over 5,000 staff in 30 different countries publishes business titles, including Property Week. It also organises exhibitions and conferences.

Many have analysts have indicated that a merger would make good strategic sense due to their focus on the British business-to-business media market.

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