British media company Mirror Group's shares hit record highs yesterday amid mounting speculation that Germany's Axel Springer Mirror's shares shot up nearly 10 per cent, gaining 21 1/2p to 239 1/2p by 3.45 p.m. and smashing their previous year high of 224p after the German publisher confirmed late last week that it was considering an offer for Mirror.

Axel Springer was seen as the front-runner in any bid war for Mirror, as one potential buyer - British regional newspaper company Trinity International Holdings - appeared to be ruled out by Mirror Group.

Mirror said yesterday that it had ended talks with Trinity about a possible combination.

Mirror said its talks with Trinity had been at a "very exploratory stage" prior to Springer's statement on Friday.

"Mirror Group will make a further announcement to its shareholders when Axel Springer's intentions have been clarified," Mirror said in a statement.

Axel Springer said earlier it was still studying whether it would make a bid.

Analysts, however, expected a number of suitors to emerge, potentially including Irish businessman Dr AJF O'Reilly's Independent Newspapers and British buyout funds.

Despite Mirror's sharp rise, analysts said it wasn't too late for investors to buy the stock, noting that Mirror could fetch a price of 260-300p per share, with some arguing that the company was worth as much as 320p.

Based on those valuations, Mirror could have a price tag of £1.18-1.37 billion sterling with a potential high of £1.46 billion.

A Mirror spokesman confirmed that Mirror chief David Montgomery and Springer chairman Gus Fischer had talked over the long British holiday weekend.