The historic Blackwell academic bookselling and publishing business is facing a rift at board level, which could result in the sale of the 120-year-old British company.
The board is split between Toby Blackwell, the former chairman now retired, and his nephew Nigel Blackwell, the present chairman. Toby Blackwell favors an immediate sale of the business, whereas Nigel favors restructuring and taking the company public within the next two years. Toby Blackwell holds 30.1% of the shares and appears to have the support of voting shareholders, giving him a further 12.5%. Blackwell Ltd., the bookselling business, has 9.3% of the voting shares in Blackwell's publishing business. Toby Blackwell will lobby for support for the sale at the next Blackwell Ltd. board meeting on January 24.
Meanwhile, Blackwell Publishers, led by Nigel Blackwell, has countered by offering to provide "greater liquidity for shareholders" following a corporate finance review. There was no official comment from the company.
Blackwell operates 70 bookshops across the U.K. and is one of the biggest private companies in Britain, valued at approximately £400 million. Total sales for 2000 were £141 million, although profits fell by £2.3 million to £10.9 million following asset write-downs. There was also a £10-million loss on Web investments.
Possible acquisition candidates include Taylor & Francis, Vivendi, Pearson and John Wiley.
