Online directories business Scoot.com is in talks to sell Loot, the free-ads newspaper it bought last year for €190 million (£150 million), it said today. The group said it is in "discussions with interested parties" regarding the sale of Loot.

The announcement follows speculation that Scoot had set an internal target of this week to select a short list of buyers. Potential buyers are thought to include Paris-based Trader.com and financial buyers.

The sale is expected to raise around €50 million to €70 million - far less than Scoot paid. Shares in the group shot up 12 per cent in response to today's statement, to 3.35p.