BertelsmannSpringer sale to proceed

The sale of BertelsmannSpringer is to go ahead, despite rumours that it would be shelved after its champion Thomas Middelhoff was dismissed as c.e.o. of parent Bertelsmann.

Gunter Thielen, his successor, surprised the markets with news that he would pursue the sale of the STM publisher. Reed Elsevier is reported to be in talks with Bertelsmann, which has commissioned London-based investment bank Merrill Lynch to find a buyer. Bertelsmann declined to comment on rumours that a deal with Reed was imminent.

In his first major reshuffle, Mr Thielen appointed Arnold Bahlmann as Springer chief executive officer. Mr Bahlmann is on Bertelsmann's executive board and has a reputation as a "divestment specialist". He succeeds Renate Krümmer—who was appointed c.e.o. when Jürgen Richter retired—after just four weeks. Sources put the value of Springer at between £650m and £1bn, a sum that would help Mr Thielen in his aim to reduce debt.

But doubts still hang over Bertelsmann's commitment to an initial public offering in 2005. While it seems likely that GBL, the Belgian finance company that owns 25% of Bertelsmann, will go ahead with an IPO, the chances of a larger IPO including Mohn family shares are slim.

Reinhard Mohn, a descendant of the company's founder Carl Bertelsmann, and his wife Liz control 58% through the Bertelsmann Foundation and own 17% outright. Following Mr Thielen's appointment as c.e.o., Liz Mohn has succeeded him in the highly influential post of c.e.o. of Bertelsmann Verwaltungsgesellschaft, the holding vehicle for all the family-owned shares.