MGN Launches Bid On Independent

The consortium backed by Mirror Group Newspapaers has today launched a £55.1m bid for the Independent. The offer is being pitched directly at shareholders, who hold 52% of Newspaper Publishing.

By moving now the consortium, which holds nearly 48% of the company, is by-passing Ian Hay Davison (chairman of Newspaper Publishing) and the remaining directors, who are currently assessing both the consortium bid and that from Independent Newspapers of Ireland. The decision to go ahead without endorsement or recommendation from the board is explained; “We believe that the financial and commercial condition of NP is deteriorating rapidly with the present uncertainty which surrounds the company and that a resolution is needed urgently.”

MGN said it would provide Newspaper Publishing with significant management, commercial and administrative services, but it promised that the editorial integrity of the papers would be safeguarded. Andreas Whittam Smith commented, “I fully support these proposals. I am fully satisfied that they secure the independence and the future of the papers.”