Independent News & Media is among the bidders for Scottish Media Group's (SMG's) publishing division, which includes the Herald newspaper in Glasgow.
The company, which is headed by Sir Anthony O'Reilly, is understood to have lodged a bid along with Providence Equity Partners by Thursday's deadline for the receipt of offers.
Other bidders for the Scottish titles are believed to include Archant, publisher of the Hampstead and Highgate Express, and Candover, a venture capital group.
However, the highest bid of £230 million sterling (€360.8 million) was lodged by the Barclay brothers, owners of the Scotsman newspaper.
But although the bid by the Barclays is the highest, it could run into competition problems. Already, Labour and Scottish National Party members of the Scottish Parliament have called on the competition authorities to prevent the twin brothers, Sir David and Sir Frederick, from buying the Herald.
Independent declined to comment yesterday.
But, despite recent speculation suggesting the company had got together with Soros Private Equity, the venture capital arm run by billionaire financier George Soros, to make an offer, it is understood to have linked up with Providence instead.
Providence, which has offices in Providence, Rhode Island and in London, is a private investment firm specialising in equity investments in communications and media companies around the world. It has investments in more than 60 companies operating in over 20 countries.
It was the principle private equity firm behind the leveraged buyout of Eircom along with Sir Anthony and Soros.
Independent's bid is reported to have been valued at between £180 million and £200 million sterling.
