Ex-mirror chief ends interest in Reach bid

THE former chief executive of the Daily Mirror has abandoned plans to bid for its publisher.

National World, run by David Mont‑ gomery, the former Mirror Group boss, said the “circumstances are not aligned” for a merger with Reach, despite “considerable industrial and financial advantages to combining the newspa‑ per portfolios”.

Mr Montgomery, 73, was chief execu‑ tive of Mirror Group, now known as Reach, for seven years until 1999. He went on to set up National World on the remains of the former Johnston Press empire, including The Yorkshire Post and The Scotsman.

His company first announced it was exploring a potential bid for its larger rival three weeks ago. A deal would have combined two major publishers of local and regional newspapers. Reach, formerly known as the Mirror Group and later Trinity Mirror, owns more than 130 titles, many of which it bought from The Guardian over a decade ago. They include the Liverpool Echo, the Daily Record, the Manchester Evening News, the Star and OK! magazine.

After press reports earlier this month, National World confirmed it was explor‑ ing a potential tie‑up between the two publishers. It said yesterday it had received “principle financial support” for a possible offer, despite not moving forward with the plan.

Mr Montgomery said: “A combina‑ tion with Reach could unlock very significant operational value for both companies, but not all the elements required to ensure a successful transac‑ tion were present.

“Rather than create unwanted man‑ agement distractions for both compa‑ nies and our respective shareholders, we have decided not to proceed with any discussions at this stage.”

Shares in Reach dropped as much as 5pc on the announcement before recov‑ ering slightly yesterday.