Mecom rejected Trinity Mirror approach: source

LONDON (Reuters) - European newspaper group Mecom (MEC.L) rebuffed an all-share merger proposal from British publisher Trinity Mirror (TNI.L), a source familiar with the situation said, confirming a Sky News report.

Mecom, which owns regional newspapers and websites in the Netherlands, Denmark, Norway and Poland, rejected the proposal for a nil-premium deal several weeks ago, Sky News said on Wednesday. They are not in current discussions, it said.

A spokesman for Trinity Mirror, owner of the Daily Mirror tabloid, said: "We never comment on market rumor or speculation." Mecom declined to comment.

Mecom's founder, veteran British newspaper executive David Montgomery, is due to retire from the group this month after shareholders pushed for his departure.

A replacement for Montgomery, a former CEO of Mirror Group, the predecessor to Trinity Mirror, and editor of the News of the World, has not been announced.

Mecom will issue a trading update on Thursday.

An analyst, who did not want to be named, said given the management upheaval at Mecom, the approach from Trinity Mirror looked opportunistic.

"Given Trinity has bigger pension issues than Mecom, it looks like a better deal for Trinity shareholders than Mecom shareholders," he said.

"I can't really see what's in it for Mecom. They are on an even keel at the moment and we are expecting a pretty decent update from them tomorrow."

Shares in Mecom were 1.8 percent lower at 238.5 pence at 1324 GMT, valuing the group at about 270 million pounds, while Trinity Mirror was up 4.8 percent, giving it a market capitalization of about 230 million pounds.

(Editing by Kate Holton, Mike Nesbit)