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Forstmann, IMG suitors in disagreement over earnings projections

6 Dec 2013

dollar_washington_money_170sqForstmann is reportedly in disagreement with IMG Worldwide’s private equity suitors over the earnings projections provided by the firm for the sport, fashion and media talent agency.

As a result of the disagreement, there is a $500m gap between Forstmann’s asking price and what the three remaining bidders, Carlye, Silver Lake and CVC, are willing to pay for the company, said Bloomberg, citing three people with knowledge of the matter.

Forstmann is looking to sell the company for $2.5bn and the final deadline for bids is December 13, said two of the people.

The firm told bidders that IMG would have an EBITDA of $200m this year, however, suitors have said that the figure should be lowered by $19m due to adjustments to earnings in four overseas joint ventures, said the people.

Forstmann Little hired Morgan Stanley and Evercore Partners in May to advise on the potential sale.

KKR also expressed interest in IMG, but dropped out of bidding for IMG last month.

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