Sunday 7 August 2011

Sunday Times: 'Investors want more regional consolidation from Trinity Mirror'

Investors are urging Trinity Mirror to restart efforts to find a regional merger partner, a year after talks broke down to combine with Northcliffe, the Sunday Times Business section reports.

It claims Trinity Mirror is under pressure to do something that will revive its share price, which has fallen by two-thirds in a year as advertising remains oppressive.

The paper quotes David Lis at Aviva Investors, Trinity’s second-largest shareholder, which has a 10% stake as saying: “It’s imperative that there’s consolidation within the regional newspapers space. The question is how it’s financed and executed — but it simply has to happen.”

Analysts at Citigroup expect Trinity this week to report a 28% fall in underlying half-year profits to £38m, on sales £10m lower at £373m.

  • The Telegraph has already warned Trinity Mirror is considering a major increase in cost cuts which could lead to significant job losses
  • The Sunday Times is behind a paywall.

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