Company of the Week: Mirror Group
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.MIRROR Group, publisher of the Daily Mirror, said chief executive David Montgomery resigned, setting the stage for a struggle over control of the UK's third-largest newspaper group.
Trinity, the regional newspaper publisher which broke off earlier merger talks with Mirror, and Regional Independent Media, a regional publisher whose bid price Mirror rejected, are expected to renew their offers. John Allwood, 47, director of the company's regional and Scottish divisions and former Mirror finance director, replaces Mr Montgomery as chief executive.
Key Mirror investors, including Phillips & Drew Fund Management, which owns almost 22 per cent, hold Mr Montgomery responsible for the recent collapse of an all-stock merger plan between Mirror and Trinity. P&D insists a merger with Trinity would be best for investors and Mirror. "I think shareholders will benefit from this situation even if I don't think the price will rise above 220p," said Laura Larghi, an analyst with Paribas. "Now it will become clear if Trinity's problem was Montgomery or something else. We'll also see if RIM raises their bid."
Mirror Group shares rose 6 per cent to 210p. It has already rejected a pounds 913m bid led by RIM as inadequate but said talks would continue to explore whether the offer can be raised. RIM declined to say if it would consider raising its price should Trinity or others bid for Mirror.
Trinity broke off talks to acquire Mirror on 10 January. The company, which publishes the Liverpool Echo, wouldn't say if it will counter the RIM offer. "We continue to watch how Mirror shareholders are reacting to this news,"it said.
Some analysts saw an increased bid by Trinity as likely. "I could see a Trinity stock bid of 180p per share for Mirror," said Ms Larghi.
Other companies are reported to be interested in Mirror, including Hearst Corp, in conjunction with private venture group Compass Partners.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments