Mecom, the UK-based publisher of European newspapers and magazines that is struggling to meet debt covenants, is in discussions with a German rival to sell its assets in that country, it emerged yesterday.

People familiar with the discussions told the Financial Times that the most promising talks involve the sale of the Berliner Zeitung, Hamburger Morgenpost and other titles in Germany to M. DuMont Schauberg of Cologne for about €170m (£153m). Mecom shares rose 13.5 per cent to 1.26p.