Glass Half Full at RBI
The Telegraph reports that the RBI deal delay means that Reed Elsevier will have to rethink its financing of the Choicepoint deal which was funded by debt, in part to be paid off by the sale of RBI.
All very high finance. But the more interesting throw away in the piece is that estimates of the value of RBI have fallen to a range of £650m to £850m - the low range now being half - yes half of the original price expectation. Remember, RBI is a business that last year made around £150m of profit. It has come to something if the biggest and most succesful business publishing company in the world is only worth 4 times last years earnings.