Ming Pao said to be in talks to acquire Metro

The city's free newspaper market may enter a new era of competition in the near future as the publisher of Ming Pao Daily News is looking to acquire Metro Daily, sources told Media Eye yesterday.

The news comes amid talk that the chief executive of Metro International, the parent of Metro, was in Hong Kong this week and was in talks with Ming Pao on the possible deal. Sources said both parties were expected to close the deal soon.

Metro chief executive Peter Kuo and senior officials at Ming Pao could not be reached for comment.

Ming Pao, which is controlled by Hong Kong-listed Media Chinese International, was said to be approaching another free newspaper, am730, for a takeover deal six months ago, before the financial crisis erupted. But am730 owner Shih Wing-ching rejected the deal, making Ming Pao turn to Metro.

Mr Shih told Media Eye: 'am730 had been approached by many interested parties for a possible acquisition. However, the interests of my staff will come first as they joined my company not only for money but also because they wanted to achieve their personal goals under my leadership.'

Market sources said Metro recently saw minor lay-offs in its editorial and sales teams. The paper's sales team has also been noticeably more aggressive of late in securing new contracts.

'Metro recently provided more discount to advertisers to boost sales revenue,' a media agent said, with ad rates now as low as HK$10,000 for a full-page display.