Johnston set to counter Gannett's Newscom bid
Saturday 11 December 1999
Shares in Newscom rose by 235p to 1,252.5p yesterday after Gannett, publisher of USA Today, said it had approached Newscom with a cash offer.
David O'Brien, an analyst at CSFB, said an alliance between Newscom and Johnston would produce substantial cost savings following the Scottish company's purchase of Portsmouth & Sunderland Newspapers. "It would be quite a good fit... Johnston would be able to take costs out of Newscom's head office and printing operations."
Gannett gave no details of its offer, but Newscom's market value at yesterday's close was pounds 306.36m.
Newscom's board of directors said it had rejected the approach and advised its shareholders to take no action as the offer "seriously undervalued" the company.
A spokesman for Gannett said the company was "still interested" in Newscom and expected to hold talks soon.
Gannett has already sought regulatory approval from the Secretary of State for Trade and Industry. An investigation by the Competition Commissioncould take about six months.
The US publisher is aiming to bolster its presence in the UK by buying regional newspaper groups. In July it bought Newsquest for pounds 904m.
- 1 Rice Bucket Challenge: India's take on the Ice Bucket Challenge 'for Indian needs'
- 2 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 Rubble Bucket Challenge: Ice Bucket Challenge adapted in solidarity with Gazans whose homes have been destroyed in conflict
- 5 Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
The 13 obscure UK laws you didn’t know you were breaking
13 laws you didn't know you were breaking
Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
Jeremy Clarkson is a cultural tumour and needs to be removed, says comedian Frankie Boyle
Air strikes? Talk of God? Barack Obama is following the jihadists’ script after James Foley beheading
- < Previous
- Next >
iJobs Money & Business
£23000 - £26000 per annum: Ashdown Group: Account Executive / Client Services ...
£36000 - £38000 per annum: Ashdown Group: Executive PA to CEO & Executive Dire...
£25000 - £28000 per annum: Ashdown Group: Generalist HR Administrator - Tunbri...
£45000 - £75000 per annum + benefits+bonus+package: Harrington Starr: Senior C...