Thursday 2 December 2010

'Trinty Mirror and DMGT in Northcliffe deal talks'

Trinity Mirror contemplated offering some of its shares to Daily Mail & General Trust this summer as part of a deal which would have seen it taking control of Northcliffe, DMGT's regional newspaper arm, according to MediaGuardian.

It says: "The basis of the deal was a scheme to bring together the two companies' regional newspaper groups under the control of Trinity Mirror. In return Trinity would have offered a mixture of cash and shares to DMGT, giving it a strategic shareholder for the first time since the days of Robert Maxwell.

"Negotiations between the two sides came to a halt, although Daily Mail executives have told their counterparts at Trinity that negotiations could resume in future. 'They told us that the door is still open,' said one person familiar with the discussions."

MediaGuardian adds: "Britain's regional newspaper owners are under intense pressure as classified advertising has collapsed in the wake of the recession along with public spending, leaving the remaining big four groups interested in exploring mergers or tie-ups. Any deal would, however, be fraught with competition concerns."

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