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Experian Says Approaches Led to PriceGrabber Review (Update2)

By Tim Barwell

Feb. 18 (Bloomberg) -- Experian Group Ltd., the world's largest credit-checking company, said ``lots of interest from private-equity and listed companies'' in the PriceGrabber price- comparison Web site prompted it to consider selling the unit.

Experian expects to get more than the $485 million it paid for the business in December 2005, Rollo Head, an external spokesman for Experian at Finsbury Ltd., said by telephone today. Nick Woodruff, another spokesman at Finsbury, declined to identify possible buyers.

The review of PriceGrabber, which allows people to compare the price of goods ranging from computer hardware to children's toys, is at an ``early stage,'' Experian said today in a statement. Director of Investor Relations Nadia Ridout-Jamieson did not immediately return a call seeking comment.

Dublin-based Experian wants to cut $80 million of costs annually by moving development activity to countries including India and China. It also hopes to boost revenue by expanding in faster growing markets, and agreed in June to pay $1.2 billion for a majority stake in Serasa SA, a Brazilian credit bureau.

``I see no reason why they would get less than what they paid'' for PriceGrabber, Christian Koefoed-Nielsen, an analyst at Panmure Gordon & Co. in London, said by telephone today. The unit ``is more profitable than when they bought it.''

Experian rose as much as 29.5 pence, or 6.7 percent, and traded at 457.5 pence as of 12:15 a.m. in London, boosting the company's market value to 4.68 billion pounds ($9.1 billion). The shares have dropped 26 percent in the last 12 months.

`Depressed' Unit

``Retail-facing companies are currently underperforming, so selling those could make the company more profitable,'' Kevin Lapwood, an analyst at Seymour Pierce Ltd., said by telephone.

Experian also owns the LowerMyBills Web site, which allows people to compare loans, credit cards and insurance products. The unit was ``depressed'' in the third quarter, Experian said Jan. 16. The company may also sell its French transaction unit, it said.

``There is not the froth or excitement that there was in internet retailers when they purchased the business,'' Paul Checketts, an analyst at Oriel Securities Ltd., said by telephone today. ``They will have to work pretty hard to find a buyer at a price they are happy with.'' Checketts recommends investors sell the shares of the company.

Selling PriceGrabber won't ``have a huge impact on'' Experian as a whole, said Panmure Gordon's Koefoed-Nielsen, who recommends investors buy the shares.

Experian appointed Allen & Co., a New York-based investment bank, to find buyers for PriceGrabber, the Sunday Times reported yesterday, without saying where it got the information.

To contact the reporter on this story: Tim Barwell in London on tbarwell@bloomberg.net

Last Updated: February 18, 2008 07:23 EST

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