Shares in Trinity Mirror jumped on Monday morning, after it confirmed reports it was close to completing a takeover of regional newspaper group Local World for £200m, in a deal that will add more than 100 titles to its media empire.
Trinity Mirror's stock was up seven per cent to 148.75p per share in mid-morning trade.
Local World is run by ex-Trinity Mirror chief David Montgomery, who led the creation of the newspaper group in 2012 through the merger of Daily Mail & General Trust’s (DMGT) Northcliffe Media and Iliffe News & Media.
Trinity Mirror paid around £14m for a 20 per cent stake in Local World at the time of its merger. DMGT owns 39 per cent of the company, while Montgomery also owns a stake. Other backers include Odey Asset Management.
Talks to buy Local World have been ongoing since the Spring after facing opposition from the Liffe family, which owns a fifth of the company.