Outlook: Mirror Group

SIR NORMAN FOWLER and his chief executive at Regional Independent Media Group, Chris Oakley may face a fight in returning with Candova's money to bid for their inheritance. The trouble with public to private takeovers is that the venture capitalists wouldn't be doing it unless they thought their target was fundamentally worth a lot more. Typically a venture capitalist aims to refloat in three to five years at double what he bought for.

Mirror Group's largest shareholder, Phillips & Drew, is said to want a solution which gives it a continued position in the newspaper industry. It is not particularly keen on Candova's cash. However, by attracting such an offer, Mirror Group has at least demonstrated that it was right to reject Trinity's earlier approach. So can Trinity be brought back to the negotiating table? With Mirror Group shares trading at a premium to Candova's indicative offer, the market is saying it can.