3i teaming up with Montgomery for SMG titles

The private equity group is backing a bid led by the former Mirror Group CEO for the Glasgow Herald newspapers.

As both trade and financial buyers continue to jockey for position over the asset sale by Scottish Media Group (SMG), the Observer newspaper reports that 3i will have former Mirror Group Newspapers CEO David Montgomery fronting their bid.

3i and Montgomery are now tipped to be the front runners bidding for the daily, Sunday and evening newspapers that are published under the Glasgow Herald banner. It is reported that SMG are hoping to receive over £200m for the titles.

As previously reported on PEO, a number of trade buyers including Edinburgh-based Scotsman Publications (owned by the Barclay brothers), Daily Mail & General Trust, Johnston Press, which earlier this year acquired Regional Independent Media from Candover and Independent News & Media are also interested in the newspapers. Other financial buyers said to be interested include Apax, Bridgepoint Capital and Kleinwort Capital.

The first round of bidding closes this week.