A SPOKESMAN for Mirror Group Newspapers has refused to confirm whether David Montgomery might welcome a takeover bid from German publisher Axel Springer Verlag, despite Sunday reports that the British chief executive ''wants the deal.''
The publisher of the Daily Mirror, the Scottish Mirror and the Daily Record has been identified by analysts as a vulnerable acquisition target because of its languishing share price. Springer, Germany's biggest newspaper owner, confirmed on Friday that it was considering an offer for Mirror Group.
In spite of this, official sources at the London-based company were unwilling to confirm the organisation's position. ''We do not comment on market rumours,'' the Mirror spokesman said.
However, there is considerable speculation amongst analysts and observers that Montgomery would like to spark off a bidding war for his newspaper operation. This would help shore up Mirror's languishing share price, which is expected to gain as much as 20% when trading resumes tomorrow after the bank holiday weekend.
''I can not believe that Springer would get a clear run at it,'' one source said. ''The Americans could want it, or (Independent Newspapers chairman Tony) O'Reilly could want it. Somebody like the Trinity Group might even decide that this is their time to wade in.''
Springer confirmed its interest in Mirror last week with an announcement to the London Stock Exchange, which helped drive the target's share price 6.5p higher to 218p by the close of trading on Friday.
''Axel Springer is considering a number of opportunities, including Mirror Group Newspapers, which might or might not lead to an offer for Mirror Group Newspapers,'' the German company said.
''That said, Axel Springer has no financial interest in Mirror Group Newspapers and has made no offer to Mirror Group, nor is it in a position to know whether it would make an offer.''
Springer chief executive Gus Fischer, who once headed Rupert Murdoch's News International, knows Montgomery well from his time working for the Australian media mogul. The two chief executives are said to be similar in approach and attitude, although this might not necessarily lead to an agreement between Springer and Mirror.
''While this may be a fantastic deal for shareholders, I would question whether it's a good thing for the (UK) newspapers,'' an insider said.
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