Bailey, who is pushing Trinity Mirror into new areas such as directories publishing, is planning a takeover of Hotgroup, whose assets include the recruitment website Work thing.com. Trinity Mirror is likely to pay £50m for it.
If completed, the transaction would give Trinity Mirror significant access to the fast-growing domain of online recruitment. It would also provide an opportunity to promote the company’s 240 regional newspapers as well as its national titles.
Bailey has repeatedly stated her intention to diversify Trinity Mirror to show the City that she has a long-term growth strategy that takes account of the decline of newspapers and the rise of the internet.
Hotgroup, run by Tony Reeves, co-founder of Office Angels, said last week it had received a “preliminary expression of interest” but declined to name the suitor. Other companies may also table bids.
Besides its cluster of online businesses, Hotgroup also owns a traditional recruitment consultancy. Its shares closed at 14½p on Friday, valuing the firm at £36m.
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Neither Trinity Mirror nor Hotgroup would comment.