Montgomery Considers Mirror Bid

David Montgomery, the former chief executive of Mirror Group, last night confirmed that he is in discussions with financial backers over a possible takeover bid for the company. The announcement to the Stock Exchange, required by the Takeover Panel, ends weeks of speculation that Montgomery might be considering a ‘comeback’ bid.

Montgomery’s short statement said that he is “in discussions with a number of financial institutions which may or may not lead to an offer for the Mirror Group.” The former chief executive was effectively ousted from the Mirror Group in January, following a board room power struggle with non-executive chairman Sir Victor Blank (see Montgomery Resigns From Mirror Group). Since then he has denied rumours that he has been plotting a takeover bid of his own.

Montgomery is unlikely to make any further moves until the publication of the Competition Commission’s report on bids by Trinity and Regional Independent Media (RIM), the regional newspaper groups (see Possibilities For Mirror Group). The report is expected to be released some time this week. Mirror Group says that it has so far held no discussions with Montgomery.

Reports suggest that Montgomery’s main problem may lie in matching the bids from Trinity and RIM. Trinity, for example, would be able to make cost savings by merging some of its operations with the Mirror’s. Mirror’s shares closed yesterday at 249.5p, valuing the company at around £1.1 billion. It is expected that an offer from Trinity will value the group at anything up to £1.6 billion.

Mirror Group: 0171 293 3000