Mixed signals

01 September 2009

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For all the talk of stillness associated with the summer, the various regional unquote" publications have recorded an increased number of deals lately. The latest issues of France and Nordic unquote" have registered 30 and 27 deals respectively, up substantially on previous issues. Perhaps this "uptick" is a distortion due to the rush to get things done before the late summer holidays set in across the continent

PPM Oost has completed an impressive seven deals in recent weeks. Separately, foreign investors are also eyeing up the Benelux region. This has been highlighted by the acquisition of hotel chain Golden Tulip by US-based Starwood Capital and the EUR17m+ injection into VNU Media by H.I.G. Capital.

Some activity, though limited, has been of the restructuring ilk. Truvo (formerly VNU World Directories) appointed Houlihan Lokey as financial adviser in July to assess options on how to deal with its EUR1.2bn debt pile. As is the case with so many restructuring cases, it will be a long time before an outcome is reached.

In fact, the long-winded nature of restructurings may be a reason so few have surfaced so far, despite widespread expectations of a tidal wave. What is more likely is that we will see many loans from the boom period nearing maturity over the next couple of years, catalysing restructurings in the medium term.

As media speculate on the end of the recession and the shape (U, V, and W) recovery will take, it would be wise to approach the newfound optimism with caution.

Yours sincerely,

Francinia Protti-Alvarez

Editor, Benelux unquote"

Tel: +44 20 7004 7475

Francinia.protti-alvarez@incisivemedia.com.