Alternatives to D&B Acquisition of Hoover's Sought

Jan 17, 2003

Marathon Partners L.P., an investment partnership that owns about 9% of Hoover's, Inc. has announced the selection of Marlin & Associates LLC (M&A) as its financial advisor to assist in helping to find alternatives to the proposed takeover of Hoover's by financial information publisher D&B. Mario D. Cibelli, Marathon's Managing Member, opposes the proposed acquisition by D&B of Hoover's, in which D&B is offering $7 in cash for each Hoover's share, characterizing the proposed price as "grossly inadequate." D&B announced its acquisition on Dec. 5, 2002. Excluding Hoover's $36 million in cash, D&B would be effectively paying $81 million. The purchase by D&B is subject to approval by a majority of Hoover's shareholders. A shareholder vote is scheduled for February 14th, 2003. M&A will assist Marathon to identify alternatives to the proposed transaction. These alternatives are intended to look at a number of different transactions that Hoover's shareholders may find more attractive. "The Company's estimates call for revenues of $100 million and net income of $25 million or more in 4 or 5 years," said Cibelli. "This implies a share price in the high $20s to low $30s. Our own model, which discounts management's revenue projections, implies a share price for Hoover's at least in the low $20s in 4-5 years.  How can they now ask shareholders to take $7.00?" said Cibelli.

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