INDEPENDENT Newspapers has declined to comment on suggestions that it may be interested in bidding for United Provincial Newspapers, the British regional newspaper division that is being offered for sale by United News & Media.

Earlier this month Independent and Mirror Group Newspapers failed in a £313 million sterling bid for Pearson's regional newspaper business in Britain and a bid for United Provincial Newspapers is seen in the industry as a logical alternative move by Independent and MGN.

Independent and MGN currently control Newspaper Publishing, publishers of the Independent and Independent on Sunday, and have indicated that they see expansion in the British regional market as a priority.

United Provincial Newspapers is likely to attract a price tag almost as high as the £300 million plus paid for Pearson's Westminster Press, said industry sources, who suggested that Independent and MGN would have to think in terms of bidding over £300 million once again to have any strong chance of success.

One advantage that Independent and MGN might enjoy if they bid for UPN is the absence of the successful bidder for Westminster Press, the KKR-backed Newsquest Group. Independent and MGN lost out to Newsquest for Westminster despite lodging a last-minute bid that was higher than the £300 million bid paid by Newsquest.

UPN is the third-largest regional newspaper publisher in Britain and last year had operating profits of £28.4 million sterling on sales of £184.4 million. The bulk of its revenue come from its newspapers in the north of England which include the Yorkshire Post, Yorkshire Evening Post, Sheffield Star and Lancashire Evening Post. UPN also operates a major newspaper printing centre near Preston.

In the south-east of England, where Independent already publishes freesheet newspapers, UPN has 28 freesheet titles grouped into the Informer group in west London, the Advertiser North London Group and the Yellow Advertiser in Essex and north-east London.

UPN also has 19 freesheet and paid-for titles in south Wales, including the daily South Wales Argus.