Gannett Announces Terms to Acquire Newscom
Posted on May 5, 2000Gannett Co., Inc. has announced the terms of a recommended offer to acquire the entire issued and to be issued share capital of News Communications & Media PLC (``Newscom'') by Gannett U.K. Limited, a wholly owned subsidiary of Gannett. The offer has been unanimously recommended by the board of directors of Newscom. Gannett has received irrevocable undertakings to accept the offer from all of the directors of Newscom, related parties and from institutions representing in the aggregate approximately 15.65 percent of Newscom's issued shares.
Newscom is the eighth largest regional newspaper publisher in the U.K. It publishes 99 titles including 4 daily newspapers, with the remainder a mix of paid and free weeklies and niche publications. Newscom also owns a printing company, Southernprint, as well as an interest in magazine publishing together with leaflet distribution and electronic publishing.
Gannett is an international news and information company that publishes 74 daily newspapers in the USA, including USA Today. The company also owns a variety of non-daily publications and USA Weekend, a weekly newspaper magazine. Newsquest plc, a wholly owned Gannett subsidiary acquired in mid-1999, is one of the largest regional newspaper publishers in England with a portfolio of more than 180 titles. Its publications include 11 daily newspapers with a combined circulation of approximately 450,000.
In announcing the offer, Douglas H. McCorkindale, President of Gannett said, ``We are extremely pleased that Newscom will become part of Gannett. Newscom's publications provide a significant opportunity to expand and strengthen our operations in the U.K. The management and employees of Newscom share our commitment to serve the readers and advertisers in the communities in which we each do business.''