JOHNSTON Press, publisher of regional newspapers ranging from the Yorkshire Post to the Worthing Herald, stunned investors with a [pounds]212 million fund-raising today most of it through a rights issue.

The group said advertising revenues had fallen sharply in recent weeks, and without the share issue it could have been in real danger of breaking the covenants on its bank loans.

The emergency rights issue will be accompanied by a placing of new shares and the sale of exitsing shares to Malaysian media business Usaha Tegas.

This is one of the operating businesses of Tamil billionaire Ananda Krishna who has ...