An information memorandum is said to have been circulated, but only its three DM production sites in Croydon, Leicester and Swindon are included.

The group's pre-press wing, Vertis PRS, formerly Admagic and Production Response, is not included in the document.

Speculation is mounting over the likely purchasers for the DM operations. One well-placed source said: "It will be a big company like St Ives or a big ego. And it will probably be the latter rather than the former."

But, according to Vertis Europe executive chairman George Moore, the group's future is still under consideration. Moore is overseeing the restructuring process.

"All I can say is that I am exploring all the options for the company," he said, and added that the process is likely to be concluded by the end of September.

In the group's latest results announcement, Vertis president and chief operating officer Dean Durbin said: "We are continuing to pursue strategic alternatives with respect to our UK direct mail business, but difficult conditions in our European business have negatively impacted on Vertis' overall financial performance."

Vertis Europe's second-quarter results EBITDA showed a deficit of -9.7m 
(-$17.4m) compared to 305,000 in the same period in 2004.

The first six months to 30 June showed an EBITDA of -65.5m compared to 1.08m the previous year. A spokesman added that "Vertis PRS' half year was in the black".

European sales for the second-quarter fell from 20.6m last year to 17m this year. Over the six-month period to 30 June, net sales were 34.9m compared to 40.8m in 2004.

Story by Philip Chadwick