Herbies bags lead role for Yell on TPI deal

Herbert Smith has advised longstanding client Yell on its proposed takeover of Spanish rival Telefonica Publicidad e Informacion (TPI).

Earlier this year Spanish telecoms company Telefonica put its 59.9 per cent stake in TPI up for sale through an auction process. It was announced last month (28 April) that Yell had won that process.

Yell has offered EUR8.50 for each TPI share, valuing the company at EUR3.3bn. The UK directories company still needs to get approval from the remaining shareholders of TPI. The transaction is due to be completed by July 2007.

Herbert Smith corporate partner Ben Ward led a team that included finance partners Malcolm Hitching and Clive Barnard. The lawyers had to advise Yell on a new £4.6bn credit facility that will be used to fund the bid. Yell also launched an equity placing which is expected to raise around £350m. Spanish heavyweight Cuatrecasas advised Yell as to Spanish aspects of the deal, with corporate partner José Luis Blanco Ruiz taking the lead.

Citigroup, Deutsche Bank, Goldman Sachs and HSBC are underwriting the credit facility and will also provide Yell with an ongoing revolving credit facility of £400m.

Clifford Chance Madrid partner Carlos Hernandez-Canut along with London partners Mark Campbell and Jim MacHale advised the banks on all aspects of the financing.

The combined Yell and TPI will publish directories in the UK, the US, Spain, Argentina, Brazil, Chile and Peru.