Clessidra Drops Plans for Dada Bid

Private equity fund Clessidra is dropping plans to bid on RCS MediaGroup‘s $50-million-stake in Italian Internet company Dada, Reuters reported. RCS, the publisher of Italian newspaper Corriere della Sera, started due diligence on its 50.7 percent Dada stake in October, Reuters wrote. The Carlyle Group is rumored to be interested in the Dada stake, as are Germany’s United Internet and France’s Digital Virgo, Reuters reported.

(Reuters) – Private equity fund Clessidra, seen as a frontrunner to buy RCS MediaGroup’s $50-million-stake in Italian internet company Dada, is dropping plans for a bid, due to unsatisfactory terms, a source close to the matter said.

Debt-laden RCS, publisher of Italy’s top newspaper Corriere della Sera, started due diligence on its 50.7 percent Dada stake in October, fuelling speculation of a sale or a break-up of the internet company.

RCS and Dada are holding separate board meetings on Friday amid market speculation there could be a decision over a possible Dada stake sale.

“Clessidra has no intention to pursue an offer as it’s only a 50 percent stake,” the source told Reuters on Friday. “At the moment Clessidra is not setting up an offer”.

Clessidra declined to comment while RCS and Dada had no immediate comment. Dada’s founder and boss Paolo Barberis owns 6.5 percent of Dada.

Shares in Dada were down 1.04 percent at 4.53 euros by 1239 GMT, valuing RCS’s stake in the company at around 37 million euros ($50 million). RCS’s shares were down 2.15 percent at 1.18 euros.

A source close to the matter had told Reuters in December private equity fund Carlyle was also interested in the stake.

Italian media have said Germany’s United Internet and France’s Digital Virgo might also be eyeing Dada. ($1=.7377 euros) (Reporting by Danilo Masoni)