Daily Mail eyes bid for Independent titles-paper

LONDON, Nov 2 (Reuters) - British newspaper group Daily Mail & General Trust is considering a bid for the Independent and its Sunday sister title, part of Independent News & Media (INME.I), Britain's Observer newspaper reported.

The titles could be off-loaded for as little as 1 pound, with DMGT taking on the loss-making papers' liabilities, the report said, citing industry sources.

The report cited sources close to IN&M as saying the newspapers are not for sale but that rival groups have offered to take on some back office functions, including human resources and accounts.

IN&M must renegotiate several loans next spring but the Observer says banks are unwilling to underwrite the company at a time when its UK operations are loss-making and an advertising downturn is likely to push them further into debt.

Spokespeople for DMGT and IN&M were not available for immediate comment.

(Reporting by Rhys Jones; Editing by Jason Neely)