Market Conditions Rain on Yell’s IPO Parade

03 July 2002

Yell, the UK directories business formerly known as Yellow Pages, has postponed its planned initial public offering.

The decision to pull the flotation was made late Sunday evening after consultation with the company’s advisers, Merrill Lynch, Goldman Sachs and J P Morgan – just forty-eight hours before Yell was due to announce the price at which its stock would float. The grapevine had guesstimated this at between £1.8 billion to £2.3bn ($2.75bn-$3.52bn; €2.89bn-€3.57bn),

Yell stressed that the withdrawal will not hinder any possible acquisition of additional independent directory companies in the US as it has access to undrawn bank funds of £100m – even after its recent purchases of the country's two largest independent directory publishers, Yellow Book and McLeod Publishing.

However, the credit facility does not extend to purchases in mainland Europe.

Data sourced from: Financial Times; additional content by WARC staff