Mecom up 20% on takeover talk

Shares in the media company run by former Trinity Mirror boss David Montgomery have shot up by 20% on strong speculation that one of its main newspaper businesses had received a takeover offer.

Reports suggested a bidder had pitched in with a £375 million tilt at Mecom's Norwegian division, Edda Media.

The bidder's identity remains unknown, although it is not thought to be Norwegian media group A-Pressen.

Despite the huge rise in its share price, Mecom had still not made a statement about the speculation as the Evening Standard went to press. Edda is Norway's number three media group, with 13% of the regional newspaper market there. Sales last year were £226 million, representing nearly a fifth of Mecom's entire business.

Shares in Mecom were up 3¾p to 23p - but still well down on their highs a year ago of more than 95p. The company's shares have been hit by fears about the state of the advertising market.