DAVID MONTGOMERY’S Mecom has been sidelined in the £1.2 billion auction to buy Daily Mail and General Trust’s regional newspaper arm, leaving a field of six as the battle hots up.
Those still in the race for the titles, which include the Aberdeen Press & Journal, are Trinity Mirror in conjunction with CVC, Johnston Press, and Gannett, plus the venture capitalists Cinven, Candover and Providence Equity Partners.
The remaining bidders are due to receive a presentation from the management of the regional newspaper business shortly. Final bids are due early next month and DMGT hopes to conclude soon after.
Other alliances could emerge before the auction closes, because Johnston and Gannett, owner of the Newsquest chain, are unlikely to be able to buy Northcliffe, the DMGT unit, in its entirety. Bidders may also bring in new partners, but rumours that Johnston, publisher of The Scotsman, and Candover had teamed up are unfounded.
DMGT wants buyers to take Northcliffe and run the risk of winning regulatory approval after completion, so in theory it is possible that a player such as Johnston could win the auction and offload titles that it is required to sell afterwards.
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Mecom, run by Mr Montgomery, and its partner Vernois Suhler Stevenson were not big enough to bid for Northcliffe on their own. The venture capitalists have not been able to team up with one of the remaining bidders, although in theory they could link up to help one of the parties still in the race.