A statement from National World said: “National World confirms that it is at the early stages of exploring a possible offer for the entire issued and to be issued share capital of Reach.”
National World added that no approach had yet been made to the directors of Reach but that an offer period has now commenced in accordance with the rules of the Takeover Code.
Reach’s board said it noted “the announcement by National World that it is considering a possible offer for the entire issued and to be issued share capital of the company”.
In its statement, Reach said that it “has not received an approach from National World… The board will issue a further statement if and when appropriate. In the meantime, Reach shareholders are strongly advised to take no action.”
As noted by the Guardian's Mark Sweney, "Montgomery has long coveted a takeover of Reach, to which he sold his former newspaper business Local World in 2015 for £220m. Reach has seen its market value slump by two-thirds to £330m over the past year."
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