• Telegraph Media Group, Tuesday, June 3, 2008 10:45 AM

British publisher Reed Elsevier is approaching banks about a $1.5 billion loan for the eventual buyer of its trade magazine division, which includes Variety. By arranging such a loan, Reed is trying to increase the odds it can sell the division in one piece, rather than bit by bit.

UBS, BNP Paribas, JP Morgan, GE, Bank of Ireland and Lloyds TSB are among those expected to join the consortium offering the loan. Equal to around 4.75 times Reed Business Information's underlying earnings, the loan would only be available to those bidding for the whole group.

Reed Elsevier chief Sir Crispin Davis announced the sale in February, signaling his intention to pull out from advertising-dependent businesses.

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