- The Mirror Group board has rejected the £910 million cash bid from Regional Independent Media, but has not ruled out an eventual deal with the company, which publishes the Yorkshire Post among other titles.
The rejection of the original bid had been expected after Mirror Group's largest fund manager, PDFM, came out against the RIM offer earlier this week. PDFM, which controls 22 per cent of Mirror Group's shareholding, has said it would prefer an all-share offer, such as the Trinity bid which was rejected two weeks ago, rather than a cash deal.
However, other shareholders are reported to be more enthusiastic about a cash offer and their valuation of the company is not thought to be significantly higher than the RIM bid price. This effectively values the company at £1.4 billion, as it would also assume £500 million of debts.
RIM, which is run by the former Midland Independent Newspapers chief executive, Chris Oakley, is backed by the venture capital group, Candover, the Soros Fund and Deutsche Morgan Grenfell.
Mirror Group now owns Midland Independent, as well three national newspapers, the Daily Record in Scotland, and the Newsletter in Belfast.