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Amid revived talk of BT selling its ailing IT unit, another UK firm whose core service is not IT is apparently putting its computer program management arm up for sale. Informa Plc, the publishing and events group, will auction off Robbins-Gioia for a hoped-for £70million to try to reduce £1.2m of debt, The Mail on Sunday reported. The company, whose titles include Lloyd’s List and Scrip and Banking Technology, was eyeing the spin-off as part of its plan to shed non-core operations, the paper said. Reporting annual results in March, Informa hinted Robbins-Gioia had seen the recession by saying clients’ renewal decision times suffered a “noticeable slowing”. It also admitted that its ability to grow the division, which has about 100 contracts with the US government, outside of the United States “could be restricted.” Greenhill, the investment bank, will run the auction, though it could not be immediately reached to comment on “several large companies” reported to be interested. Clients of Robbins-Gioia using its project management programs include General Motors, Merill Lynch, Verizon, Johnson and Johnson, Bank of America and AT&T. Reports of the anticipated auction of the IT-led unit come amid advice for BT that the telco should prepare Global Services for a sale, once it stops its financial haemorrhaging. According to BT’s trading statements, Global Services has been leaking cash at an annual rate of £300m for the past three years. “Medium term I expect it to be sold,” Richard Holway of TechMarket View said of the division, which he claimed did not qualify BT as an “IT services operator.” “However, selling at the nadir in both the market and its own fortunes, would only garner garage sale valuations. So, my advice would be; put the house in order, show some decent profits and sell in a couple of years’ time.” However, after announcing it made a quarterly loss of £1.5bn, BT chief executive Ian Livingstone downplayed suggestions that Global Services would be sold. On a reported conference call, Mr Livingstone said: “The important thing is to make Global Services a better business. We will see big progress in the next full-year.” Overall total revenue for BT will fall, however, by about 4-5 per cent in 2009-10, by which time Global Services will still not be cash-flow positive, the Financial Times reported. Staff at the division will see it split into three: Domestic will service BT’s public sector clients, Multinational will service corporations and Global will service overseas outfits. Hanif Lalani, chief executive of BT Global Services, will oversee the new operating model and structure, details of which will be announced and communicated to affected staff this week. May 18, 2009 Email this article Printer friendly page Previous Page
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