FD dropped as Mirror Group hires Finsbury

Takeover target Mirror Group this week hired financial PR agency Finsbury to replace five-year incumbent Financial Dynamics.

Takeover target Mirror Group this week hired financial PR agency

Finsbury to replace five-year incumbent Financial Dynamics.



The move came a few hours after the resignation of the newspaper group’s

chief executive, David Montgomery and as the Mirror Group faces a bid

from rival newspaper group Regional Independent Media.



Finsbury was appointed without a competitive pitch and is expected to be

responsible for turning around recent negative press reports about

boardroom struggles at Mirror Group as well as handling media relations

surrounding bids for the group.



On Finsbury’s client list is retail giant Great Universal Stores, whose

deputy chairman, Sir Victor Blank, is also Mirror Group’s non-executive

chairman. Finsbury handled PR for GUS’s takeover of retailer Argos last

year. The agency will report to Montgomery’s replacement, John

Allwood.



Financial Dynamics reported to Montgomery. Nick Miles, FD chief

executive, said: ’We’ve been stood down for the moment and Finsbury have

taken our place.’



Montgomery quit before a vote of no-confidence on his tenure was due to

be held following pressure from Blank, other group non-executives and

City institutions dissatisfied with his performance.



Mirror Group owns the Mirror and Sunday Mirror as well as the People,

Scottish paper the Daily Record and Midland Independent Newspapers,

which owns the Birmingham Post and the Wolverhampton Star.



Regional Independent Media, which owns the Yorkshire Post, bid for the

Mirror Group last week at a price of 200p per share - valuing the

company at about pounds 1.4 billion. Mirror Group turned down the

bid.



Mirror Group uses investor relations consultancy City Interface for its

investor relations.



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