UPDATE 2-UK events organiser UBM to buy Advanstar for $972 mln

Wed Oct 1, 2014 6:24am EDT
 
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* Deal makes UBM No.1 in U.S. events market on revenue basis - CEO

* Deal expected to immediately add to earnings

* Expects deal to add 135 mln stg to events revenue in 2015

* Shares fall 4.6 pct, top percentage loser on midcap index (Adds CEO, analyst comments; updates share movement)

By Noor Zainab Hussain

Oct 1 (Reuters) - Communications and events company UBM Plc said it would buy trade show organiser Advanstar Communications for $972 million, becoming the top events organiser by revenue in the United States, but its shares fell on concern it had overpaid.

News that UBM would fund the deal through a 563 million pound ($912 million) rights issue also dampened sentiment.

Reuters reported last month that UBM was looking to buy Advanstar for about $900 million.

Many in the market had thought the company would pay for Advanstar by selling its PR Newswire business, analysts said.   Continued...