Venture Capitalist Group Mulls Fresh Trinity Mirror Bid
Venture Capitalist group, Candover Partners, which held takeover talks with Trinity Mirror last year, is reported to be considering making a fresh bid for the newspaper group.
Candover, in partnership with another private equity group, Apax, held talks with Trinity Mirror last year about a possible deal (see Trinity Mirror Rumoured To Have Received Take-Over Bid). However, speculation suggests that negotiations broke down over a disagreement about price and discussions came to nothing.
It is thought that Canodover and Apax were prepared to pay more than 450p a share for the newspaper group, but this was deemed to be too close to the newspaper group’s share price at the time, which was around 400p.
However, a report in The Observer claims that Candover has not lost interest in the group, which publishes the Daily Mirror and 250 regional titles, and may make a lone bid, if Trinity Mirror’s shareholders show any interest in an offer that could be as high as 500p per share.
It is understood that Candover would retain Trinity’s regional newspaper titles, but would sell off the national titles, possibly to former Trinity boss, David Montgomery, who has been linked in the press with another venture capitalist firm, 3i.
Last week Trinity Mirror announced that price cuts at the Daily Mirror cost the group £21.8 million in 2002, driving down circulation revenues by 7.6%. Operating profit at the national newspaper division fell by 18.6% to £77.6 million and turnover fell by 4.9% to £494.0 million (see Bailey Moves To Stop Mirror-Sun Price War As Costs Hit £22m).
Sly Bailey, the new chief executive of the company (see Bailey Leaves IPC To Replace Graf At Trinity Mirror), said that she was not fan of price cuts and would be putting a stop to the current battle with the Sun (see Daily Mirror Cuts Cover Price).
Trinity Mirror: 020 7293 3000 www.trinitymirror.com
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