Mirror Group Shares Rise as Expectations Grow for Chief Executive Departure

Strategic Insights -

The shares of Mirror Group rose by 9p to 207p yesterday, fueled by growing expectations that chief executive David Montgomery will step down later today, paving the way for a fully fledged auction of the newspaper group. This development comes after a boardroom row sparked by Trinity's bid approach, which has now signalled its willingness to raise its original indicative offer of 165p per share. As the situation unfolds, Mirror Group is poised to negotiate with potential suitors, including Trinity and Regional Independent Media group, with bankers suggesting that the resolved boardroom row will improve the group's negotiating position.

Key Takeaways:

  • The Mirror Group shares rose by 9p to 207p, a significant increase on previous levels.
  • Trinity, the regional newspaper group, has signalled its willingness to raise its original indicative offer of 165p per share.
  • The boardroom row appears to be resolved, with executive directors expected to abstain in the event of a vote for Mr Montgomery's removal.
  • John Allwood, the former finance director, has been lined up to replace Mr Montgomery as CEO.
  • The Mirror Group is expected to negotiate with potential suitors, including Trinity and Regional Independent Media group.

Statistics:

  • Mirror Group shares rose by 9p to 207p yesterday.
  • Trinity's original indicative offer was 165p per share.
  • The number of key Mirror Group shareholders that supported David Montgomery's appeal is unknown.
  • The number of executive directors expected to abstain in the event of a vote for Mr Montgomery's removal is unknown.

Sources:

  • "Shares in Mirror Group rise as expectations grow for chief executive departure" (BBC News)
  • "Mirror Group shares rise as Trinity signals higher bid" (The Guardian)