SHARES in publisher Highbury House - which employs around 250 people in Bournemouth - closed up 12.3 per cent after takeover speculation.

Shares rose 0.33p to 3p after the Stock Exchange formally confirmed weekend reports that former Sun editor Kelvin MacKenzie had boosted his stake in the group.

Previously chief executive of talkSPORT owner the Wireless Group, Mr MacKenzie has acquired another 27.7 million shares in Highbury House.

It takes his holding to 47.3 million ordinary shares in Highbury, 14.99 per cent of the company.

Mr MacKenzie is believed to have funded the purchase by using part of the £7 million he gained from selling the stake he built up in the Wireless Group.

Highbury last week announced the departure of finance director Owen Davies on September 30 and chief operating officer David Nizol on August 10.

Chief executive Mark Simpson is due to be succeeded in September by Mike Frey, currently managing director of Highbury Entertainment.

Mark Simpson will continue to remain heavily involved with the group as deputy chairman.

"In particular, he will continue to lead the restructuring of the group as well as playing an important role in the development of the new group and its refinancing," said a spokesman.

Highbury came to Bournemouth in July 2003 when it acquired Paragon Publishing in St Peter's Road for £32 million. The group currently publishes around 30 magazines in Bournemouth, including computer games titles P2, Play, Cube and XBM and also Total DVD and DVD World.

Paragon first changed hands in May 1999 when Mr Simpson led a £14 million management buy-in, backed by the venture capital group 3i and the Bank of Scotland.

That deal's structuring was one of the reasons that Paragon was then sold again to Highbury.

First published: August 16