THE FUTURE of the Independent newspaper should become clearer this

week as potential bidders jostle to become the preferred choice of its

owner, Newspaper Publishing, and its shareholders.

The situation remains confused but there is believed to be only one

definite offer on the table, from the Irish Independent Newspapers group

which is headed by Tony O'Reilly, whose main job is chairman of H.J.

Heinz, the US food group.

He is believed to have offered to buy just under 30%, leaving the

existing 36% stake held by the Italian and Spanish newspapers, La

Repubblica and El Pais, in place.

Mirror Group Newspapers is the other main contender and is believed to

be the one favoured by the Independent's principal founder, Andreas

Whittam Smith.

Its deal is thought to involve buying out the institutional holders,

which have just over half the equity, and cost-cutting through joint

printing and distribution. The institutions include Standard Life and

Prudential and they are believed to want to get out.

The Telegraph group is also said to have been interested but it would

be likely to run into monopoly problems, given the positions the

Telegraph and the Independent hold in the market.

All bids involving newspapers are automatically referred by the Office

of Fair Trading to the Monopolies and Mergers Commission, unless the

newspaper subject to an offer is in financial difficulty, which could be

the Independent's position.

In any case, there would be few if any monopoly considerations if

either Mirror Group or Independent Newspapers assumed effective control.

The Independent and Independent on Sunday's circulations have been

sliding.