KM Group Chairman,
Geraldine Allinson, responding to the OFT decision

KM Group, publisher of KentOnline, has
withdrawn its bid to buy a series of Kent weekly newspapers.

The Office of Fair Trading (OFT) has
referred the group’s proposed acquisition of the titles owned by
Kent Regional News and Media to the Competition Commission.

KM Group had made it clear, since
before it embarked on the regulatory process, that if this was the
outcome, it would withdraw its bid.

KM Group Chairman, Geraldine Allinson,
said: "We have invested a huge amount of time on this project over
the last few months.

"The costs and time required for a
full Competition Commission review would be completely unreasonable
for a business of our size and for a deal of this scale.

"The acquisition would have been a
good opportunity for our business. However, we have a long list of
other developments already in process and we intend to continue to
build on our unique blend of multi-media services for the people of
Kent."

When asked to comment on the OFT
review process, former MD, Graham Mead, said: "We understand this
is the first time the OFT has reviewed a case since the change in
guidance.

"While the teams at the OFT and OFCOM
were positive and supportive, almost without exception, there were
some painful moments.

"From a personal perspective, it feels
that the process is set up for large, corporate deals, not small
transactions involving businesses of our size.

"The time and effort required appeared
to be completely disproportionate to the transaction involved.

"Also, while we fully appreciate that
the OFT team have to work to a strict framework, I don’t think that
framework is at all relevant to the current state of our
industry.

"Nor does it in any way reflect the
broader Government view on helping UK business by removing hurdles
and giving it an opportunity to grow."

The deal would have seen KM Group take
over titles including the Folkestone Herald, Medway News and Isle
of Thanet Gazette.