THE publisher of The Guardian is considering a surprise sale of its regional-newspaper division as part of a strategic review that could lead to a comprehensive break-up of the 185-year-old media group.

Merrill Lynch, the investment bank, has been asked to “leave no stone unturned” in its analysis of Guardian Media Group’s portfolio of assets. It is understood that the company has attached a price tag of about £600m to its regional newspaper assets, the best-known of which is the Manchester Evening News.

The deeds of the Scott Trust, the owner of GMG, pledge to ensure the independence of The Guardian in perpetuity. The strategic review is designed to explore whether the trust would benefit from banking the cash from the disposals of Trader Media Group, the unit which owns Auto Trader, the regional newspapers, and GMG Radio Holdings, which owns the Smooth FM radio station.

Analysts believe the sale of all of GMG’s non-national newspaper assets as well as The Guardian’s sister title, The Observer, could raise more than £1.5 billion. It comes as GMG prepares to announce a successor to retiring chief executive Sir Bob Phillis. Carolyn McCall, chief executive of Guardian Newspapers, is understood be the frontrunner.

• The auction of Daily Mail & General Trust’s regional-newspaper arm, Northcliffe Newspapers, is entering its final stages, with three bidders understood to have submitted offers of £1.2 billion-£1.3 billion.

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