Other big shareholders in Local World will be the Yattendon group - the current owner of Iliffe - and Trinity Mirror.
BBC: Daily Mail sells regional newspapers to Local World
Iliffe News and Media - whose titles include the Cambridge News and Hertfordshire Mercury - is owned by media and property group Yattendon.
BBC: Person typing at keyboard
In a statement, Yattendon said it could "confirm that Yattendon Group has held preliminary discussions with David Montgomery about becoming founder shareholders in a new local media company".
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