Trinity Mirror clears disposals, warns on outlook

by Isabella Piasecka Media Week 08-May-08, 15:13

LONDON - Trinity Mirror's sale of eight newspaper titles in Berkshire to Dunfermline Press has been cleared by the Office of Fair Trading.

The OFT ruled that Dunfermline Press (DPL) had taken sufficient steps to address the competition concerns arising from its purchase of the eight titles from Trinity Mirror last year, and will not refer the matter to the Competition Commission.

The acquisition gave DPL control over the only two local newspapers in Slough, Windsor and Eton, eliminating the close competition between the Observer and Express series of titles in these areas.

In response to the OFT's concerns, DPL offered to divest the entire Express series of newspapers to Baylis, the owner of the Maidenhead Advertiser. Since the Express is also circulated in Maidenhead, where Baylis is by far the leading player, DPL said it would divest all editions of the Express apart from the Maidenhead edition, which DPL will retain.

The OFT described the proposals as a "clear-cut remedy that restores competition".

Trinity Mirror, led by chief executive Sly Bailey, sold its Berkshire Regional Newspapers group for £10m in July 2007 to the Berkshire Media Group, a subsidiary of DPL.

News of the OFT ruling came before Trinity Mirror published guidance on its trading position this year. It said it expects its full-year performance to be in line with expectations but added that, given the uncertain economic outlook, it remains cautious.

The company said advertising remained volatile in the first 17 weeks of trading to 27 April, warning that revenues have decreased by 2.7% during the period. Group advertising revenues in the period have fallen by 3%, with a 2.9% decline in its national division and a 3.1 percent fall in its regionals arm.