Show Hide image

Invesco sells 14 per cent stake in Mecom

The move has been anticipated since July

Atlanta-based independent investment management company Invesco sold its 14 per cent stake in the pan-European newspaper group Mecom, Guardian reports.

One source said that Mecom's second-largest shareholder Invesco sold its stake to a number of "blue chip institutions".

The move is understood to help the group's chief executive David Montgomery save his position.

In September, Invesco, backed by Aviva and Legal & General forced Montgomery into accepting a "planned retirement" once the company releases its pre-close trading statement in January 2011.

Their plan to replace Montgomery with Patrick Tillieux, a former senior executive at broadcasters SBS and ProSiebenSat.1 was deferred until January.

The rebel shareholders, who at that time controlled 50 per cent of Mecom, now control less than 30 per cent of the group after Invesco offloaded its stake.

Invesco has been decreasing its stake since around early July, when it controlled more than 18 per cent.

It is believed that Montgomery may show Mecom's improved financial performance as evidence that his strategy is working, in order to defend his stay at the company.