The question is whether he has just fallen victim to his own medicine or whether it is genuinely

The question is whether he has just fallen victim to his own medicine, or whether it is genuinely illness which is driving him into early retirement. "To err is human, but forgiveness is not my policy." That's the saying Sam Chisholm is reputed to have had posted on his desk at BSkyB, and it helped establish his reputation as a bruiser and leading exponent of the head-banging, gorilla school of management. He said: "If Mirror get it, I'd see it as a stepping stone to acquiring other regional newspaper groups." Mirror bid in conjunction with Independent Newspapers for Pearson's Westminster Press titles last year, but lost out to Newsquest Media Group.MIN has been repeatedly named as a bid target as consolidation in the regional newspaper industry gathered pace.. Some commentators also believed that if Mirror clinched the deal it would sell a number of titles in order to focus on MIN's Birmingham and Coventry strongholds. A range of groups, including Johnston Press and Midland News Association, may be interested in any titles offloaded.One analyst said Mirror could expand further into the regional newspaper sector if it was successful in its bid for MIN.

Executives at both companies have previously said that these existing business links may have started rumours of a deal.Analysts speculated that, judging by the prices offered for other regional newspaper groups, MIN may go for around pounds 180m. However, it is thought the deal will not be finalised immediately, and talks are progressing at a "fairly leisurely" rate.Mirror, which owns a 46 per cent stake in Newspaper Publishing, publishers of The Independent and Independent on Sunday, already co-operates with MIN on a cable television venture, Birmingham L!ve. The regulator has apparently accepted Transco's argument, given the short time remaining for industry- wide consultation.. Mirror Group announced yesterday that it is in talks with Midland Independent Newspapers, owner of the Birmingham Post, about a possible bid for the company. The news came after months of speculation that the two companies were in discussions. Market observers said yesterday that Mirror and MIN had been in talks "on and off" for around eight months. Neither David Montgomery, chief executive of Mirror, nor Chris Oakley, chief executive of MIN, would comment last night.

MIN's shares soared 30p to 179p yesterday, up from a 12-month low of 108p last summer. Dealers said the announcement was sparked by renewed rumours in the market. John Battle, the new industry minister, has told Ofgas he wants to stick to the October timetable but is prepared to accept a short delay to avoid damaging customer service. The company has been in dispute with Ofgas over the value of the assets on which it can earn a return, the amount of depreciation it can charge and the amount of operating expenditure it should be allowed.Separately yesterday it emerged that the next trial of domestic gas competition, involving 2 million homes in Scotland and the North East of England, is likely to be pushed back from October to mid-November. Ms Spottiswoode will meet independent gas suppliers in the Ofgas Domestic Competition Focus Group on Monday to tell them Transco cannot build new computer systems in time to meet the original timetable.Ian Lang, the former President of the Board of Trade, had announced the October plan shortly before the election, moving the original target date forward from 1998.

But the MMC is thought to have broadly backed the regulator's approach in a move which City analysts believe could still result in a reduction in bills of close to pounds 20.BG described Ms Spottiswoode's original proposals as the "biggest smash and grab raid" in corporate history and "seizure of shareholders' funds on an unprecedented scale". Unions were last night called to a meeting at BG's headquarters to be briefed on the outcome of the MMC investigation, which was prompted after the company rejected price cuts worth pounds 28 a year for domestic customers proposed by the industry regulator Clare Spottiswoode. BG has warned that the reduction in revenues set out under the new price formula could mean 10,000 job losses from TransCo's 20,000 strong workforce and cut its cash flow by pounds 400m a year.Details of the MMC's findings have been kept under tight wraps since its report was delivered to BG and Ofgas a fortnight ago. Analysts point out that in 40 years of lawsuits, the industry has not paid a cent for a health-related claims.Other issues which may have been settled include an agreement to ban smoking in public buildings except for bars, restaurants, casinos and prisons and there would be bans on tobacco advertising on billboards and on sponsorship of sporting events and a ban on cartoon characters such as Joe Camel.. British Gas is today bracing itself for a tough price clampdown as the Government publishes the long-awaited Monopolies and Mergers Commission report on the charges its pipeline division TransCo is allowed to levy. On top the US tobacco industry might have to pay $1.5bn for a campaign aimed at dissuading smoking.

In addition, individual lawsuits are expected to be permitted with the total awards to successful plaintiffs capped at perhaps $4bn a year. When it is announced the full ramifications will take most people a week or so to digest. Hell, just look at the logistics". Though there are many issues still unresolved, those close to the talks say that several matters have already been settled. Cigarette makers could be asked to pay $10bn in cash upfront, with around 70 per cent going to individual states to pay for medical costs to treat sick smokers.