Kroll detectives in takeover talks
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Your support makes all the difference.Equifax, the world's leading credit agency, is in talks with super- sleuths Kroll Associates which may lead to a takeover of the private detection agency.
Negotiations started during the summer after several years of on-off contacts. They may lead to the Atlanta-based group taking, if not majority control, a substantial equity stake along the lines of the 23 per cent holding sold by flamboyant founder Jules Kroll to American Insurance Group (AIG) in 1993.
This weekend Equifax declined to comment, though Kroll confirmed it had been in talks with a number of parties.
"In recent years Kroll has had numerous discussions regarding business alliances. At this time. we have only one formal alliance and that is with AIG," spokeswoman Maggie Allen said in an official statement from Kroll's London office.
Founded in New York in 1972, Kroll pioneered professional detection work for big corporate clients. In 1985, it opened its London office in the former headquarters of M15 in Curzon Street to capitalise on the wave of takeover deals.
In perhaps its most notable UK success, Kroll tracked down Hanson's investment in racehorses for the late Lord White, which helped keep ICI from the conglomerate's clutches.
Times have been tougher of late, however, as top staff have left, including ex-London chief Patrick Grayson, who founded his own firm, Ciex, in 1994.
Increasing competition has left fees flat at around $50m, which have to support a costly worldwide network.
Flotation ambitions have also been stymied, insiders say, by the problems of public exposure.
"The talks with Equifax are not the least bit surprising," one former senior Kroll operative said. "Jules is wanting to sell out. A flotation was very tempting, but for this business brings in all sorts of difficult questions."
Equifax is a $1.7bn a year turnover business, valued at $5bn on the New York Stock Exchange. Of its 14,000 employees, 1,600 work in the UK, where it has built up to rival Great Universal Stores' CCN as the UK's leading credit agency.
Last week, GUS took the battle to Equifax's home turf, with the pounds 1bn purchase of California-based Experian, the US number two with annual sales of $570m.
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