Digital publisher Future has also been speculated as a potential buyer for Reach
Reach, the publisher of The Mirror, has become a bid target for David Montgomery, its former chief executive and founder of its local news rival National World.
Mr Montgomery’s company, founded on the remains of the former Johnston Press empire including The Yorkshire Post and The Scotsman, told the stock market on Thursday it was “at the early stages of exploring a possible offer for the entire issued and to be issued share capital of Reach”.
National World, with a market capitalisation of less than £53m, is a minnow relative to Reach, which is valued at nearly £330m even after a 75pc share price collapse since September last year. It was unclear how a deal would be structured and National World said it had not made an approach to Reach.
The explorations were first reported by the Betaville market rumours website. If National World had denied it could bid, it would be barred from making a takeover attempt for six months under City rules.