THE Portsmouth News is set to be taken over by Johnston Press, one of the largest regional newspaper publishers in the country.

Johnston has made an agreed bid for Portsmouth and Sunderland Newspapers - but the deal still has to be approved by the Trade and Industry Secretary.

Johnston has offered £22.25 for each of the 82.7 per cent of P&SN shares it doesn't own - 14 per cent above the closing share price.

The groups' first began talks last November when Johnston bought a 14 per cent stake in the group.

There was also interest from Newsquest and from Newscom which publishes the Southern Daily Echo, but Newscom chief executive John Dux said: "We are not prepared to overpay on the acquisition front.

"All acquisitions must be able to demonstrate an attractive return to our shareholders. We are looking at a number of potentially very exciting opportunities.''

Johnston's bid will cost the group £254 million and values P&SN at £266 million.

P&SN chairman Stephen Waley-Cohen said: "We believe we have achieved a very fair price for P&SN, reflecting the strategic importance of its publishing busi-ness." The sale of the newspaper division follows the disposal of the group's One Stop shops to T&S Stores for £68 million.

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