National World has said its board would be “minded to” accept a takeover bid by major shareholder Media Concierge if the offer is formally made.
Direct marketing business and Irish local newspaper publisher Media Concierge launched its bid to take control of the UK’s third-largest regional media group last month and has since upped its offer from 21p per share to 23p.
Media Concierge already holds 27.8% of National World shares.
The relationship between the two companies had become contentious: Media Concierge abstained on a vote to re-elect National World executive chairman David Montgomery for National World’s leadership in May, National World subsequently discontinued its national print advertising relationship with Media Concierge subsidiary Mediaforce, and since the takeover offer was revealed National World accused Media Concierge of financial “irregularities”, a claim the other company rejected as “baseless”.
The two companies have now agreed a “temporary halt in legal proceedings” relating to the alleged historical invoicing irregularities while discussions are ongoing over the takeover bid.
National World said Media Concierge has “provided written reassurances” to its board “regarding its intentions for the company following completion of any such offer” and has met due diligence requirements.
It added: “The board has great confidence in National World’s strategy for value creation as an independent business and is excited by the Company’s prospects.
“This notwithstanding, the Board has concluded, after consulting with the company’s advisers and counsel, that it would be minded to recommend the dinal improved proposal if a firm offer was made to the company’s shareholders on these terms.”
However it went on to say there is “no certainty that any offer will be made”.
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