Neuer Markt-listed Internationalmedia's (IM) announcement that it will miss its 2001 targets has clouded analyst enthusiasm about the Spyglass takeover deal and sent shares falling by over 20% to Euros 18 by mid-afternoon Monday (Jan 14).

In an ad.hoc announcement for the Spyglass transaction, IM also declared that "according to first un-audited estimates", its operating result for 2001 would surpass the previous year's, "but require correction of the company's forecast. As a result of a delay of certain business transactions due to difficult market conditions after 11 September 2001 some revenue and profit expectations for 2001 could not be realised, but are expected to be accounted for in a comparably strong first half 2002".

Commenting on this, private bankers Merck Finck & Co estimated that IM's 2001 sales will now amount to Euros 280m instead of the initially anticipated Euros 355m, with the EBIT down from Euros 47.2m to around Euros 25m. "Our estimates for the future will have to be increased, but in the short run, the disappointment about the company's missed 2001 targets will overbalance the acquisition news", the bank's analysts noted. "According to experiences we have made with other media companies, it is very likely to face additional bad surprises in the next few weeks. We therefore downgrade the stock to hold".