"We are in negotiations to form a joint venture project, and although talks are not finished, we are optimistic they will be completed soon," said Gruner+Jahr's head of corporate communications, Thomas Huber.

Huber said the talks had evolved due to the changes in the gravure market.

According to reports in the German media, the print company is to be established outside of Germany, with the UK a favourite due to Axel Springer's interest in Hollinger International.

Huber said all parties had agreed on several major points, but he declined to indicate what these were.

Talks between the three print and publishing companies about forming an alliance were first revealed earlier this year (PrintWeek, 12 February).

Gruner+Jahr will hold the majority stake in the new venture company.

Huber said the merger proposals would be forwarded to the EU's competition authorities in the next few months.

German publisher Axel Springer is one of several interested parties in Holl-inger's titles, which include the Daily and Sunday Telegraph in the UK.

Bertelsmann owns just under 75% of Gruner+Jahr, and investigated the potential for a greenfield gravure plant of its own in the UK at one point.

IT system specialist Arvato, also a Bertelsmann subsidiary, has been been linked to sites in Derby and Liverpool (PrintWeek, 29 April).

Story by Andy Scott