Possibilities For Mirror Group
This morning Mirror Group Newspapers lost its CEO, David Montgomery, amidst takeover discussions with regional newspaper publishers, Trinity International and Regional Independent Media (RIM) (see Montgomery Resigns From Mirror Group). He took the decision to step down ahead of a possible ousting by the company’s shareholders and non-executive director, Sir Victor Blank.
Montgomery was seen as the obstacle to the progression of negotiations with the two newspaper groups and it is understood that shareholder confidence in him as chief executive has fallen. However, he leaves the company with a pay-off of around £2 million after compensation for share options have been included. The company’s former finance director, John Allwood, is to take over as chief executive. Allwood is currently director of the company’s regional and Scottish divisions.
The boardroom wrangles began when the talks with Trinity resumed around Christmas (see Mirror Group-Trinity Talks Fizzle And Die). These discussions quickly broke down and although a formal offer was never made, it is understood that Trinity was valuing Mirror Group at 165p per share. Subsequently, RIM tabled a 200p per share, or £913 million bid (see Regional Independent Media Makes £913m Mirror Bid) which was then rejected by the Mirror board as ‘not adequate’ (see Mirror Group Rejects £913m RIM Bid).
A merger with Trinity would create the UK’s largest newspaper group with a total circulation of over 17 million copies (inclusive of the Mirror’s national newspapers). Trinity has a combined circulation of around 5 million paid-for and free newspapers which are distributed throughout areas of Great Britain and Northern Ireland. Two of the group’s largest newspapers are the Liverpool Echo (161,000 copies) and the Belfast Telegraph (130,000). The map below shows the areas covered by Trinity’s newspapers:
Trinity Newspaper Coverage
Whilst Mirror Group’s total circulation including the national newspapers is over 11 million, the company’s regional papers have a circulation of under 2 million. A merger with Trinity, and its 5 million sales, would certainly boost Mirror’s regional presence.
RIM, on the other, has a much smaller circulation and coverage than Trinity. Its paid-for and free papers totalled under 1.4 million in the January-June 1998 ABC and VFD audits. Its main titles are the Yorkshire Post (103,000 copies) and the Sheffield Star (88,000). The group’s freely-distributed Leeds Weekly News circulates at around 170,000 copies per issue. A merger with RIM would give Mirror a total circulation of around 14 million copies (again including the nationals). RIM’s newspapers circulate entirely in Yorkshire and the North of England, as shown below:
Regional Independent Media Newspaper Coverage
The Mirror’s regional papers cover mainly the Midlands and Northern Ireland so a merger with either company would augment its regional reach significantly. The Birmingham Evening Mail is the Mirror Group’s largest regional title with an average circulation of 195,000. At 3:58pm today the Mirror Group’s shares stood at 207p, unchanged from yesterday’s closing price.
Mirror Group Regional Newspaper Coverage
Subscribers can access the “Press” and “Regional Media” databases from the drop-down box at the top of this page.
Mirror Group: 0171 293 3000