(Reuters) - Shares in UBM Plc (L:UBM) rose more than 2 percent on Wednesday, a day after Reuters reported that PR firm Cision was preparing a bid to buy PR Newswire, UBM's press release distribution business.
Chicago-based Cision, owned by private equity firm GTCR LLC, is participating in an auction run by UBM for PR Newswire, according to people familiar with the matter.
Reuters had reported earlier this year, citing sources, that UBM was looking to sell PR Newswire for more than $700 million (£456 million).
Analysts at Liberum wrote in a note that they saw the sale of PR Newswire as a positive as it "would transform UBM into an effective 100 percent events business, which should drive a re-rating."
Liberum, which has a "buy" rating on the UBM stock, said it valued the PRN business at about 500 million pounds.
New York-based PR Newswire distributes corporate announcements via news agencies such as Thomson Reuters Corp (TO:TRI) and other digital platforms. For years it has been seen by analysts as non-core to UBM's main franchise of organising trade events such as the world's largest fashion convention.
PR Newswire reported revenue of 195.8 million pounds in 2014, accounting for 26 percent of UBM's total.
Shares in UBM were up 1.7 percent at 489.4 pence by 0805 GMT.
($1 = 0.6521 pounds)