U.K. venue operator Mama Group still intends to stage a new two-day festival with the London Paper, after News Corp announced that the free daily was closing.

News Corp's News International division publishes the title, which launched three years ago in a free sheet war with the London Lite.

However, it will now close on Sept. 18 as a part of a cost-cutting exercise.

"The strategy at News International over the past 18 months has been to streamline our operations and focus investment on our core titles," said James Murdoch, the chairman and chief executive, News Corporation Europe and Asia.

The London Paper Headliners festival will be staged Sept. 16 and 17 at 13 venues in London. Acts on the bill include Doves, Athlete, the Magic Numbers, the Lemonheads, Daniel Merriweather, the Boxer Rebellion, Gabriella Cilmi, Biffy Clyro, Sophie Ellis-Bextor, VV Brown, Dot Allison and Dan Black.

Venues staging shows include the 100 Club, Heaven, ICA, Madame JoJo's and retailers HMV and Fopp. Ticket-holders can exchange their ticket for a wristband, which permits access to all the shows.

Mama Group is expected to issue a full statement on the situation in the coming days.

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