24/06/2008

The chief executive of The Scotsman’s publishers has strongly dismissed rumours of a takeover bid.

Tim Bowdler, who heads Johnston Press, has reacted to speculation that the company was about to be the subject of a takeover attempt by Usaha Tegas, the investment arm of Malaysian billionaire, Ananda Krishnan, which recently acquired a 20 per cent stake.

Bid rumours surfaced in several national newspapers and the financial website, Bloomberg.com, after City analysts predicted an offer was imminent.

Said Bowdler: "There is absolutely no substance to and no basis for these rumours, period. They are utterly without substance.”

The speculation has arisen partly by Johnston’s high debt and low share price - down around 80 per cent these last three years. As well as The Scotsman, Johnston owns 318 UK regional titles.

Last month, it announced it was seeking to raise £170 million through issuing new shares, plus a further £43 million by selling off 20 per cent of the company to Usaha.

Johnston is expected to today reveal that it has completed that move.

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