Media: Mystery Bidder for Mecom's Norwegian Arm
European newspaper business run by the former Mirror Group boss receives unsolicited offer for Eddia Media
Mecom, the European newspaper business run by former Mirror Group boss David Montgomery, has received an offer for its Norwegian division.
The company is believed to have been considering a flotation of Edda Media when an unsolicited bid was made. Speculation centered on Norwegian newspaper and TV group A-pressen but a source familiar with the matter said it was not the bidder. Mecom declined to comment.
A retreat from Norway, where Mecom reported revenue of £226m last year, would be in marked contrast with its aggressive expansion over the past three years. Mecom has grown rapidly into a business with almost £1.4bn in annual revenue, 300 titles and 11,000 employees.
The UK-listed group has acquired assets in five main territories - Germany, the Netherlands, Denmark, Norway and Poland - with a view to exploiting digital opportunities in print businesses. This year, Montgomery ruled out further expansion apart from through small-scale deals, telling the Guardian: "We are comfortable in the territories we are in."
A sale or flotation of Edda would help reduce Mecom's £525m debt and could ease pressure on its share price, which has been struggling in common with other newspaper stocks in recent months.
The Norwegian newspapers were part of Mecom's £650m acquisition of Orkla Media two years ago which brought with it assets in Denmark and Poland.
Edda Media accounts for 13% of Norway's regional newspaper market, with more than 40 titles such as Sunnmørsposten and Drammens Tidende, and more than 60 websites.
The company is believed to have been considering a flotation of Edda Media when an unsolicited bid was made. Speculation centered on Norwegian newspaper and TV group A-pressen but a source familiar with the matter said it was not the bidder. Mecom declined to comment.
A retreat from Norway, where Mecom reported revenue of £226m last year, would be in marked contrast with its aggressive expansion over the past three years. Mecom has grown rapidly into a business with almost £1.4bn in annual revenue, 300 titles and 11,000 employees.
The UK-listed group has acquired assets in five main territories - Germany, the Netherlands, Denmark, Norway and Poland - with a view to exploiting digital opportunities in print businesses. This year, Montgomery ruled out further expansion apart from through small-scale deals, telling the Guardian: "We are comfortable in the territories we are in."
A sale or flotation of Edda would help reduce Mecom's £525m debt and could ease pressure on its share price, which has been struggling in common with other newspaper stocks in recent months.
The Norwegian newspapers were part of Mecom's £650m acquisition of Orkla Media two years ago which brought with it assets in Denmark and Poland.
Edda Media accounts for 13% of Norway's regional newspaper market, with more than 40 titles such as Sunnmørsposten and Drammens Tidende, and more than 60 websites.
Use the feedback form below to submit your comments.
Use the form below to email this article to your friends.
- Beijing Talks Aim to Break North Korea Nuclear Deadlock
- US Forces Continue Strikes on Pakistan 'militants'
- Condoleeza Rice Meets Gadafy in Libya
- Storm-hit Haitians Starve on Rooftops
- Afghanistan: Paris Match Pictures 'promoting Taliban'
- Energy: Bp Makes Peace With Oligarchs By Axing Joint Venture Chief
- Energy: Brussels Told to Pursue Azerbaijan Pipe Dream
- Legendary Global Cyclist Dies in Greek Road Crash
- No Place for Runners-up in Land of Oil and Beauty
- Education: Black Caribbean Children Held Back By Institutional Racism in Schools, Says Study