Dutch publisher abandons merger

Billboard is among VNU's titles

Dutch publisher VNU has abandoned a proposed $7.6bn (£4.4bn; 6.3bn euros) merger with US firm IMS Health after fierce opposition from shareholders.

VNU said the lack of investor support had forced it to call off the deal and that its chief executive would step down as a consequence.

The firm will instead focus on growing its current business and plans to float on the New York Stock Exchange.

A diversified media firm, VNU is best known for its business magazine titles.

Strong opposition

Its publications include Computing, Billboard and Hollywood Reporter.

IMS Health is a specialist in healthcare research.

Having heard the views of our shareholders, it became clear that it would not be possible for us to proceed Rob van den Bergh, VNU chief executive

The merger, announced in July, needed the support of a majority of VNU investors to proceed.

However, leading institutional shareholders said they could not support the deal, arguing that it was too expensive and strategically risky.

In light of its decision, chief executive Rob van den Bergh said it was "appropriate" for him to stand down.

He will remain with the company until a successor is found.

'Compelling case'

"We believe there was a compelling business rationale for combining VNU and IMS that would have resulted in a stronger company and increased shareholder value over the longer term," Mr van den Bergh said.

"However, having heard the views of our shareholders, it became clear that it would not be possible for us to proceed."

VNU said it would focus on making its business more profitable, warning that this could result in some restructuring of operations.

It will also aim to return 1bn euros to investors through special dividends.