- Mirror Group is being targeted in a £800 million bid by venture capital group, Candover Investments, in the wake of the Mirror's failed merger talks with regional newspaper publisher, Trinity.
According to reports in today's Daily Telegraph, Candover wants to merge Mirror Group with its Regional Independent Media subsidiary creating a company estimated to be worth more than £1.1 billion.
It is understood that Candover met Mirror Group chairman, Victor Blank, on Friday and offered to make a cash bid at a small premium to Friday's closing share price of 173.5p.
News of the bid in early trading this morning pushed Mirror Group's share price up 31.5p to 205p, edging closer to its high last summer of 248p when the company was in merger talks with German publisher, Axel Springer.
It is reported that any deal with RIM is likely to exclude David Montgomery the embattled Mirror Group chief executive from having any enlarged role in the merged company. Rather, he would be offered a non-executive directorship of the main board of the combined group.
Any new company would be likely to be headed by Chris Oakley, chief executive of RIM. Oakley is the former chief executive of Midland Independent Newspapers, a post he quit following Mirror Group's take-over last year.
Mirror Group's board of directors will meet today to consider its response to the offer.