The recent rumoured takeover bid of newspaper publisher Trinity Mirror PLC by private equity group CVC Capital Partners, looks unlikely because of Trinity’s strong share price.
Recently Trinity Mirror has seen its share price take a tumble, leaving them down 3.89% week on week. However, since whispers of a takeover by CVC investors started last week, Trinity Mirror’s share price has increased by 1.72% to close at 650p on Friday. Stock is up 13.5 points over the past year and the company is valued at almost two billion sterling (see
Rumours Of Trinity Mirror Takeover By CVC Capital Partners).
Trinity’s prospects however, have been dragged down with the demise of red-top newspaper sales, with circulation of the group’s flag-ship title,The Daily Mirror,hitting an all time low last month, dropping to 1.7 million.
Private equity groups, Apax, Candover Investments, Cinven and 3i have all looked at the group, in particular its regional papers, in view of possible takeovers.
Sly Bailey, chief executive for Trinity Mirror, is likely to oppose any takeover approach, after allegedly rebuffing a second takeover from private equity house Candover Investments early this year.
Neither CVC Capital or Trinity Mirror have commented on the claims.
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