UNITED News & Media, Lord Hollick's publishing and television group, yesterday took the first step in the disposal of its regional newspaper division when it sold its Southern titles to rival group Southnews for pounds 47.5m.

The Government yesterday blocked the pounds 52m takeover of Home Counties Newspaper Holdings, the regional newspaper publisher, by Johnston Press.

The biotech babes, once the lusty, unstoppable infants of the stock market, are again in danger of being thrown out with the bath water.

The ranks of newspaper millionaires swelled yesterday as two family- owned businesses were snapped up by bigger rivals. The Bailey family, headed by Peter Bailey, the group's chairman, will share pounds 35m after their Gloucestershire business was bought by Southern Newspapers. Martyn Williams, commercial director, and Nick Priest, finance director who both married Bailey women, will also become millionaires. Bill Gibbs and his family stand to make almost pounds 20m from the pounds 52m sale of Home Counties Newspapers to Johnston Press.

United News & Media has put its regional newspaper interests up for sale with a price tag of more than pounds 400m. The move follows months of speculation that Lord Hollick's media group would ditch its regional papers in order to focus on television and national newspapers. Cathy Newman reports.

MARKET REPORT

Jefferson Smurfit, the world's largest maker of cardboard boxes, has been through the mill (so to speak) over the past two years or so. It is less than 18 months since the paper group was hailing its 1995 profits as the biggest ever made by an Irish company, but even then it was recognising that the seeds of its own nemesis were being sown in the form of collapsing prices in an over-supplied market.

Mirror Group announced yesterday that it is in talks with Midland Independent Newspapers, owner of the Birmingham Post, about a possible bid for the company.

Full results will soon be out at virtually the same time as the preliminaries. Gerry Acher wants to bring down the paper mountain

Adscene, the regional newspaper publisher, is holding "serious talks" with a potential bidder, according to industry sources. A takeover would be the latest sign of further rationalisation of the regional newspaper market.

Emap, the media company in the throes of a boardroom bust-up, yesterday took a breather from its management misfortunes to announce sharply higher interim profits of pounds 50.6m, up 34 per cent.

Johnston Press, the rapidly growing newspaper group, remains committed to expanding further in the rapidly consolidating regional market, despite the pounds 205m acquisition of Emap's 65 titles announced earlier this year.

Newsquest boss tells Mathew Horsman about his latest coup

COMMENRT