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
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
Mirror Group uses investor relations consultancy City Interface for its