IMS Health Exploring Strategic Alternatives

NEW YORK (AP) — IMS Health Inc. said late Tuesday it is exploring a variety of "strategic alternatives," but did not comment further on the possibility of a sale following media reports on the subject a day earlier that cited anonymous sources familiar with the matter.

The health care data company retained Deutsche Bank Securities as a financial adviser and said it can't comment further while the "exploration" process continues.

Late Monday, The Wall Street Journal reported that IMS is in discussions to sell itself to a private equity firm, possibly garnering a 30 percent premium on shares for a value of $3.5 billion. The newspaper, citing its sources, said potential buyers include private-equity companies TPG, Silver Lake and BC Partners.

Shares of Norwalk, Connecticut-based IMS Health rose 43 cents, or 2.5 percent, to $17.84 in after-hours trading, regaining ground lost during the regular trading session.

The company is scheduled to release its third-quarter profit report Thursday. During the second quarter, profit fell 19 percent as customers pulled back on spending. The company also said it would cut 850 jobs, while slashing its profit forecast for the year. Part of the cost-cutting plan involved streamlining units that do business in Europe, the Middle East and Africa, while reducing capacity and size of sales and management consulting teams in areas where demand is low.