SHARES in regional newspaper group Bristol United Press (BUP) soared yesterday after it said it had agreed a #121.5m takeover offer from media giant Daily Mail & General Trust.
The Daily Mail group is offering 742.5p in cash for every BUP share. News of the deal pushed BUP's shares up 212.5p to 732.5p.
Viscount Rothermere, chairman of the Daily Mail & General Trust, said: ''We admire BUP's operational and editorial management and intend to develop the business in the way it has been run to date.''
The Daily Mail group has held 24% of BUP's shares and 40%
of its Western Newspapers
subsidiary for more than 60 years.
The company also has three of its directors on the BUP board.
BUP publishes, prints and
distributes newspapers across the West of England. Its titles include the Bristol Evening Post, the Western Daily Press, the Bath Chronicle and Western Gazette.
News of the takeover offer came as BUP unveiled half-year results showing a slide in pre-tax profits to #7.3m in the 26 weeks to September 30, compared with #11.4m at the same time last year.
Last year's pre-tax profit figure included #3.4m worth of exceptional charges and profits from discontinued businesses. Turnover on BUP's continuing operations rose to #31.8m from #30.8m.
In a statement to the Stock
Market, BUP said it believed by joining forces with the Daily Mail it would be able to build on its market leadership and take advantage of the resources of its larger parent company.
Chairman James Evans said the ''less favourable'' economic conditions the group endured during the second half of its previous financial year had continued into the first half of its current year.
Investors will receive an interim dividend of 7.5p, up from 6.75p last year.
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