Mirror Group bids to wreck Express, Telegraph ad link-up

Mirror Group chief executive David Montgomery is understood to be trying to scupper the merger of Express Newspapers and The Telegraph advertising sales operations with his own merger proposal.

Montgomery is believed to have revived an approach to Express Newspapers for an advertising sales and administration merger.

The planned sales merger between The Telegraph and the Express Group was revealed earlier this month (MW May 10).

Mirror Group and Express held talks about a sales merger a year ago. They came close to agreement but foundered at the last moment on the degree of control Mirror Group would have over the operation.

Montgomery is known to want a cost-cutting merger of his national newspapers’ administration, finance and distribution operations. He also approached The Telegraph with his plans last year.

Newspaper sources believe Lord Hollick, new chief executive of United News & Media which owns the Express Group, is unlikely to want an alliance with Montgomery.

The two clashed when they were on the board of Mirror Group, following the death of Robert Maxwell.

Express Newspapers’ senior advertising sales staff are understood to be putting together an alternative cost-cutting proposal to the sales merger.

The Telegraph has axed plans to sell readers PEPs and Tessas off the page (MW February 16) after advertisers objected. The service was planned by the Telegraph’s new Enterprises division, headed by former Midland marketing director Kevin Gavaghan.