Shares of McClatchy Co. (MNI), the third largest newspaper publisher in the United States, have been inching steadily higher for a week, climbing today to an 11 and a half month peak due to increased trading volume, Trading Markets reported Tuesday.

The surge may have been sparked by rumours of a merger with Google, Inc.
The media group, which bought Knight Ridder in 2006, owns 30 daily newspapers in 29 U.S. markets. It has also developed a substantial online presence, joining The Associated Press mobile news network as recently as last month.

Nevertheless, the chain has suffered severe staffing cuts in the recent economic crisis. Yesterday, one of McClatchy's California dailies, the Modesto Bee, announced seven more layoffs, including two newsroom staffers.