- Mirror Group's largest fund manager, PDFM, has rejected Regional Independent Media's £910 million cash bid for Mirror Group, saying it preferred an all-share option as proposed in an earlier deal by rival regional newspaper publisher, Trinity.
Mirror Group confirmed the approach following a meeting of its board of directors yesterday.
Since the offer, Mirror's share price had climbed 35.5p from 173.5p on Friday to reach 209p by this morning, edging it closer to its high last summer of 248p when the company was in merger talks with German publisher, Axel Springer.
Regional Independent Media said it was prepared to offer 200p per share in cash provided the deal was recommended by the board and it made it through the Monopolies and Mergers Commission inquiry that is compulsory when a merger involves national newspapers.
The backing of PDFM will be crucial to any successful deal.. The fund management firm is Mirror Group's single largest shareholder, owning 22 per cent of the newspaper group.
A spokesman for the firm, quoted in the Daily Telegraph this morning, said: "We would have preferred an all share offer with us having a stake in the future. What we are basically saying is we are a little bit lukewarm about a cash offer at 200p."
PDFM's preferred option is a share offer at 180p, which would give it a stake in a media company valued at between £1.3 billion and £1.5 billion.