Racing Post receives three offers

by Jacquie Bowser, Brand Republic 17-May-07, 10:30

LONDON - Trinity Mirror, the publisher of the Daily Mirror and Sunday Mirror, is understood to have received three offers for the Racing Post, the UK's only racing daily, with bids expected to be around £200m.

Private equity firms Veronis Suhler Stevenson and Exponent were believed to be bidding together. Festina Lente, an investment vehicle led by the ex-chief executive of IBI Corporate Finance, Peter Crowley, was also understood to have made an offer, according to a report in the Financial Times.

The private equity arm of Goldman Sachs is believed to have made an offer for the entire portfolio of newspaper titles that Trinity Mirror has up for sale. These include the Racing Post, the group's Midland titles and newspapers in southern England.

The Midlands and south-eastern titles are forecast to be sold for a combined £400m, making the total sale price for the portfolio around £600m.

Trinity Mirror chairman Sir Ian Gibson told shareholders at the company's annual meeting on May 10 that the company had made "encouraging progress" in relation to the sale of all the titles.

The Racing Post has seen a steady decline in its circulation over the past few years, but buyers are hoping that the internet will provide extra revenue for the title.

According to Trinity Mirror's latest trading update, advertising revenues for its sports division, which includes the Racing Post, increased by 17.7% in the first four months of this year.