AOL poised to buy UK magazine giant

IPC would join a number of well-known arms in the AOL Time Warner portfolio

US-based media firm AOL Time Warner is poised to snap up UK publisher IPC, signalling a campaign to storm the European market.

Major shareholders in IPC, owner of titles including Marie Claire, Loaded and Country Life, have confirmed to BBC News Online that they are in talks with AOL Time Warner over a sale.

While they have refused to comment further on the negotiations, industry sources said the deal hinges on an AOL board meeting on Thursday.

The purchase would more than double AOL Time Warner's 70-strong magazine portfolio, which includes the Time, Fortune and Sports Illustrated titles.

And it would give the company a platform for European expansion, as part of a campaign to boost its international presence.

AOL Time Warner, which in June signed up to a joint venture to provide online services in China, has revealed plans to boost the proportion of revenues it receives from foreign operations to 50% within a decade, from 20% today.

Price dispute

IPC's major shareholder, venture capital firm Cinven, is thought to have been in talks with AOL Time Warner for months over the sale.

But negotiations are thought to have stalled over the purchase price, with figures in the region of £1.1-1.3bn reported to be under discussion.

Cinven has invested close to £1bn in the publisher, both through its purchase of a 56% share in the firm in 1998, and subsequent investment.

Although Cinven is keen to maximise its return, magazine publishers have, like TV and newspaper companies, been hit by an advertising slowdown.

IPC's stable of almost 100 titles also includes Woman's Weekly, TVTimes, NME, Homes and Gardens and 19.