Game Group plunges 63.5 per cent to 1.3p on Monday after the struggling retailer said its shares could well be worthless.

Game fell by as much as 78 per cent to 0.8p after revealing it was in discussions with lenders and suppliers, exploring alternative sources of funding and “reviewing the position of all of its assets”.

The company admitted that, while the discussions were going on, it had “not been possible to source new products from a number of suppliers”.

Game has struggled since Christmas when a profit warning and potential breach of banking covenants sent the stock down 51.5 per cent in a week.

The company recovered somewhat but was hit again at the end of February when Electronic Arts and Nintendo both indicated Game would no longer stock many of their releases.

Singer Capital advised investors in Game “to realise value now rather than face losing out to a potential administration”.

Mecom fell 7.9 per cent to 156½p after telling investors it would not be considering additional shareholder returns from the disposal of its Norwegian division, Edda Media, until 2013 at the earliest due to a payout needed to break a lossmaking contract.

The European newspaper group agreed to terminate its commercial relationship with free-sheet De Pers after recording large losses due to the rapidly deteriorating conditions in the daily free sheet market.

In March 2009, Mecom, via a subsidiary, entered into a 13-year contract to sell advertising in De Pers in return for the payment to Mountain Media of a fixed annual fee of approximately €2m in 2009, about €7m in 2010, approximately €16m in 2011 and rising on an indexed basis thereafter.

To sever the contract, Mecom agreed to pay Mountain Media €35m on April 1 2012 and a further payment of €10m (plus interest) on January 1 2013.

Gulf Keystone Petroleum fell 16.4 per cent to 240p even as an operational update from its Kurdistan projects indicated appraisal drilling and production increase was progressing much to plan.

Seymour Pierce suggested investors might have been expecting more of an update from its Ber Bahr-1 well, which may have resulted in the market being slightly disappointed.

Mining company Arian Silver fell 9.3 per cent to 25.6p, even as it increased silver production at its flagship San Jose mine in Mexico by a third.

Stagecoach Theatre Arts surged 62.8 per cent to 63½p after confirming that Lifeskills Educationwas to buy the company for 65p a share, a premium of 66.7 per cent to the prevailing price. The offer valued the performing arts company at £6.5m.

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