Trinity walks away from Mirror Group deal
Monday 11 January 1999
In a one-line statement issued yesterday, Trinity said it was withdrawing from merger discussions with Mirror "with immediate effect". Senior Trinity executives are understood to have pulled out after concluding that Mirror's board is not fully committed to a deal.
Mr Montgomery and John Allwood, the Mirror director in charge of its regional newspaper interests, met Trinity executives last week to discuss the possibility of a merger. But the talks, which have been dragging on since November, ended without an agreement.
Both companies refused to comment yesterday. But Trinity, which publishes the Liverpool Echo and the Huddersfield Daily Examiner, is understood to have proposed an all-share deal which would place a value of pounds 1.3bn on the combined company and leave Mirror shareholders with 55 per cent of the enlarged equity.
Philip Graf, Trinity's chief executive, would run the company while Mr Allwood would become his deputy. But Mr Montgomery would be sidelined with a job overseeing the integration of the two companies. Trinity directors are adamant that there is no confusion about who would be in charge of the combined company.
Sir Victor Blank, Mirror's recently appointed chairman, is said to support the idea of the merger. But the company's executive directors, led by Mr Montgomery, argue that the deal undervalues Mirror. The group's share price has fallen sharply in recent months and closed at 162p on Friday.
Mr Montgomery is believed to have held discussions with venture capital groups about the possibility of leading a management buyout of the company. But potential buyers have been put off by Mirror's heavy debt load. Mirror Group is today expected to clarify its position with a Stock Exchange announcement.
Trinity and Mirror held merger talks last year, but discussions broke down when Axel Springer, the German publishing group, expressed an interest in bidding for Mirror. Springer eventually walked away after concluding that Mirror's asking price - reportedly 300p per share - was too high and the UK newspaper market too competitive.
- 1 Woman 'suffocates newborn baby in plastic bag and puts it in her desk minutes after giving birth'
- 2 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 5 Chinese student carries disabled friend to school every day for three years
Nepal earthquake in pictures: Photos show devastation caused by 7.8 magnitude earthquake
Royal baby: Live updates as superbug closes ward at St Mary's Hospital in London where Duchess of Cambridge is due to give birth
Nepal earthquake: Rescuers forced to dig with their bare hands in search for survivors as images show damage to historic buildings
Ed Miliband and Boris Johnson in angry clash live on BBC's Andrew Marr Show
Bali Nine executions: British grandmother on death row in Indonesia Lindsay Sandiford says she 'just wants to get it over with'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...