Blackwells at war over £300m bid

THE board of Blackwell Publishing, the Oxford-based company at the centre of a bitter family feud, is understood to be preparing to buy out shareholders using funds from venture capitalists.

The aim is to thwart a £300m bid tabled last week by rival academic publisher Taylor & Francis. But the board, headed by chairman Nigel Blackwell, is thought to be struggling to raise more than £200m from private equity groups. His aim is to stage a management buyout of the business before floating the company on the stock market in 2004.

Following the Taylor & Francis move last week, the chairman's uncle, Toby Blackwell, requested an extraordinary general meeting to consider the offer. He claims to speak for 37% of shareholders.

The board has seven weeks before it must decide on the Taylor & Francis bid and it is believed to be determined to present its offer to shareholders before the deadline.

The board, which appointed investment bank Morgan Stanley to examine options for the company, said it had received inquiries but would make no further comment until Morgan Stanley's review was completed.

Nigel Blackwell controls 42% of voting shares in the group. Control of Blackwell hinges on a 9.7% stake held by Blackwell bookshops, which are run separately from the publisher by Toby's son, Philip.

Toby Blackwell holds a majority stake in the bookshop arm, but Philip Blackwell said his father has assured him he will not ' prevail upon the board' to vote in favour of the Taylor & Francis offer. However, Toby Blackwell can pack the board with directors who favour the Taylor & Francis offer and is understood to be prepared to do so if necessary.