NEW YORK (Reuters) – Private equity firm OpenGate Capital has dropped out of the bidding for McGraw-Hill Cos Inc’s (MHP.N) BusinessWeek magazine, a person familiar with the matter said on Tuesday.
OpenGate had put in a bid for the 80-year-old magazine last month, along with Bloomberg LP, investment firm ZelnickMedia and Boston Properties Inc (BXP.N) co-founder and New York Daily News owner Mort Zuckerman.
But McGraw-Hill executives prefer a sale of the magazine to privately owned financial news and data provider Bloomberg. They consider Bloomberg the best buyer for BusinessWeek because it could capitalize on the marriage of two brand names well-known in financial circles, another source told Reuters on Sept 29.
That could be a reason for OpenGate losing interest in the asset, the first source said.
The Los Angeles and Paris-based firm, formed in 2005, is an opportunistic investor with assets around the world. Its media assets include TVGuide magazine.
McGraw-Hill said in July it was considering “strategic options” for BusinessWeek as ad sales worsened, indicating it might sell the magazine. The company hired investment bank Evercore Partners Inc (EVR.N) to run the sale.
A McGraw-Hill spokesman was not immediately available for comment.
Shares of McGraw-Hill were up 63 cents or 2.5 percent at $25.90 on the New York Stock Exchange on Tuesday afternoon. (Reporting by Anupreeta Das and Robert MacMillan; Editing by Gerald E. McCormick and Matthew lewis)