Speculation was mounting today over a possible £850m takeover of SMG, which publishes The Herald, the Sunday Herald and the Evening Times – all circulating in Scotland.

It has interests in TV production, controlling the STV and Grampian companies.

A takeover bid could lead to the group, which recently cut 95 jobs, being split up.

Reports yesterday said BNP Paribas, a French investment bank, had drawn up a bid.

The firm has already said it had to make some difficult decisions as a result of the current economic climate, which saw pre-tax profits for the half-year fall to £20m, down from £30m during the same period last year.

Last year’s restructuring programme, when 40 job cuts were made and recruitment was frozen, was followed by the loss of a further 95 staff across all its divisions.

Some 1,700 staff are employed overall by SMG, with around 800 of those in the newspapers and magazines division.

Do you have a story about the regional press? Ring 0116 227 3122/3121, or
e-mail [email protected]