LONDON (Thomson Financial) - Mobile Doctors Group Plc. (MDG) said it has agreed heads of terms for the acquisition of a "private company also operating in the medical legal reporting industry".

The company said the acquisition, while "almost doubling" the size of MDG, will also result in "significant" cost reductions.

MDG said in order to fund the acquisition, a new company - Mobile Doctors Holdings Plc (MDH) - has been incorporated to raise money from institutional investors.

MDH will then make a recommended share offer for MDG and will acquire the private company.

However, there is no certainty that any offer will be made and at what price, or that the acquisition will be made until marketing of the issue is completed, MDG said.

The company also said it has requested suspension of trading of its shares on the AIM, until such time as an admission document is posted or the acquisition or offer talks are terminated. TFN.newsdesk@thomson.com kal/lam

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