Shares in Reach spike after it confirms JPI Media takeover talks
Shares in media group Reach jumped as much as nine per cent this morning after it confirmed it is in early talks to buy assets from i newspaper owner JPI Media.
The Daily Mirror publisher today said it is in discussions with JPI Media, which owns hundreds of regional titles across the UK, but warned there was no certainty the talks will lead to a deal.
Read more: Daily Mirror owner Reach joins race to buy JPI Media
“As has been previously stated by the company, regular consideration is given to merger and acquisition opportunities which would accelerate its strategy,” Reach said in a statement.
Shares rose sharply on the announcement, before falling back to gains of roughly three per cent.
The potential deal, first reported by Sky News, would mark Reach’s latest expansion bid following the acquisitions of Express and Star newspapers and celebrity magazine OK.
The talks put Reach in pole position for a takeover ahead of rivals Archant and Newsquest, which have also been exploring options for consolidation and have been named as potential bidders.
JPI Media, which was formed to buy out Johnson Press from administration last year, had previously insisted that there was no “formal sales process”. However, the firm said it has appointed a financial adviser to consider options for the business and its title.
Read more: JPI Media in talks to see i newspaper and regional titles
JPI Media also owns papers such as The Scotsman and The Yorkshire Post, but it is unclear which titles have been put up for sale.
JPI Media declined to comment.
Main image credit: Getty