Regional publishers Trinity Mirror and Local World have today declined to comment on reports that they are engaged in merger discussions.
Trinity Mirror, which already owns 20pc of Local World, is said to be in negotiations to take full control of the David Montgomery-run group.
The claims were reported today by Press Gazette and attributed to a “well-placed industry source.”
The source is reported to have told the website that Trinity was prioritising the potential purchase of Local World ahead of any deal for Richard Desmond’s Express Group titles.
Last week, TM confirmed it was in the process of “evaluating” certain assets owned by Mr Desmond, whose Northern & Shell group includes the Daily Express, Daily Star and their Sunday stablemates.
The Press Gazette story claims that TM has held talks with Mr Montgomery and other LW shareholders DMGT, which owns a 38.7pc stake in the business, and Yattendon, which owns a 21.3pc share.
However it goes on to say that it is unclear whether these stakeholders would be prepared to sell their stakes in the business, now valued at over £100m.
As reported by HTFP earlier this month, Trinity Mirror has already recouped its £14.2m investment in Local World with its 20pc share generating profits in excess of £15m over the past two years.
In its annual results published on 2 March, TM revealed that its share of LW’s profits in 2014 was £5.2m.
The report said: “The group has now received dividends in excess of the £14.2 million invested in Local World.”
A takeover of Local World by Trinity Mirror would make the newly-merged group the dominant player in UK regional media, with a publishing footprint covering 15 of the top 25 centres of population in England and Wales.
Trinity Mirror already owns the main daily newspaper titles in Birmingham, Manchester, Liverpool, Cardiff, Coventry and Newcastle. Control of Local World would enable it to add Bristol, Nottingham, Leicester, Hull, Plymouth, Stoke, Derby and Swansea to that list.
Sign up for our free daily email bulletin
Follow HTFP on Twitter
Got a story? Email the Editor at
If I were a Local World employee, I would currently be crapping myself at the prospect of being owned by Trinity Mirror.
Report this comment
The new business could be rebranded Dumb and Dumber
Report this comment
I’d imagine it’s those at LW HQ who don’t have big fat shareholdings who are most likely to be crapping themselves right now.
Report this comment
LW staff are atremble with “excitement” (love that word) at the possible takeover by such a reliable and consistent employer whose track record is undeniable. And I do mean undeniable.
Report this comment
It is a matter of not inconsiderable pleasure to me that, as I believe human beings of a certain disposition are wont to say, “love it when a plan comes together”.
Or, to use the vernacular – “Go me! Kerching!”
Report this comment
It could be worse. JP.
Report this comment
Well, so much for the brave new Local World. Whatever its own fortunes, a merge with Trinity Mirror is like contracting commercial cancer.
Report this comment
Why would the others agree to sell, when dividends over the last two years have evidently been so big? Doesn’t add up.
Report this comment
“Trinity Mirror already owns the main daily newspaper titles in Birmingham, Manchester, Liverpool, Cardiff, Coventry and Newcastle. Control of Local World would enable it to add Bristol, Nottingham, Leicester, Hull, Plymouth, Stoke, Derby and Swansea to that list.”
Does this mean Cambridge will not be part of the deal, opening the door to Archant, who have long looked enviously in that direction?
Report this comment
No it merely means Cambridge is not one of the Top 25 population centres in England and Wales, Johnners.
Report this comment
Local World and Trinity…the twin death knell of local newspapers…..
.
Report this comment
So, does Local World still want this newsprint order for the Western Morning News on Sunday and the Express & Echo on Monday, or what?
Report this comment
A continuos concern for job security, the black cloud gets darker…
Report this comment
Why would the others agree to sell, when dividends over the last two years have evidently been so big? Doesn’t add up
These have been down to job cuts – outsourcing and off loading assests!!!!!
So bugger all left to cut lol!
Report this comment