DTI Approves Mirror Group Takeover Bids

The Department of Trade and Industry (DTI) has this morning approved the takeover bids for Mirror Group by both Trinity and Regional Independent Media (RIM) (see Trinity Offers £1 Billion For Mirror Group). However trade and industry secretary, Stephen Byers, has stipulated that Trinity divest of its four Northern Ireland titles – the Belfast Telegraph, Sunday Life, Community Telegraph and Farm Trader – in order to protect the diversity of the press in Northern Ireland.

Byers says: “If the Newsletter (a daily morning newspaper currently published by Mirror Group and read predominantly within the Unionist community) were also published by Trinity, it is likely that its distinctive voice in representing Unionist opinion would be lost. I agree with the Competition Commission that this outcome would threaten the adequate representation in the press of the range of political opinion in Northern Ireland.”

A takeover of Mirror would also increase Trinity’s share of advertising in regional and local papers in Northern Ireland by 15% to 67%. This is also seen as a problem by the DTI.

The RIM bid, however, has been cleared without any conditions by Byers. The transfer would give RIM a 17.2% share of the UK’s regional and local newspapers; Trinity would command a 24% share, after divestments. The Competition Commission and the DTI believe that these concentration figures do not pose a problem as many of the newspapers concerned serve different areas.

At 1:25pm today, Mirror’s shares stood at 261˝p, valuing the company at just under £1.2 billion. Trinity is expected to make an offer of around £1.3 billion. RIM’s previous offer, which valued Mirror at £913 million, was rejected (see Mirror Group Rejects £913m RIM Bid) and the share price of Mirror Group has since risen. David Montgomery, Mirror Group’s former chief executive, is also considering bidding for the company (see Montgomery Considers Mirror Bid).

More details on Trinity’s and RIM’s reaction to the DTI ruling to appear on Newsline as they become available.

Department of Trade and Industry: 0171 215 5600 Mirror Group: 0171 293 3000 Trinity: 01244 687 000 Regional Independent Media: 0113 243 2701