Ullstein unsettled by Bonnier

When the Swedish media group Bonnier acquired German trade publisher Ullstein Econ List from Random House in October, the deal was hailed by the industry as the best possible outcome for the Munich-based publisher. Ullstein had changed ownership three times in less than a year—from Axel Springer to Random House to Bonnier.

But the anticipated smooth transition into Swedish ownership has turned into a minefield, with growing unrest among staff and the entire German publishing industry. The first problem emerged shortly before Christmas when staff, who had been led to believe that they were to stay in Munich, were told that the company would be relocating to Berlin in April. Ullstein was founded in Berlin 101 years ago, and was based in the city until 1999.

Last week bought the surprise resignation of Ullstein's editorial director Lothar Menne, one of the best known figures in the German publishing industry.

The 59-year-old—who introduced John Grisham to the German market, and recently made headlines when he poached Danielle Steel from Random House Deutschland in a seven-figure deal—has already left the company to set up a publishing consultancy in Berlin. Mr Menne moved from Heyne to Ullstein in 2000.

His resignation followed the announcement that Viktor Niemann, chief executive of Bonnier's German holding Bonnier Medien GmbH, will run the newly formed Ullstein Buchverlage GmbH, which incorporates Classen, List, Econ, Propyläen and Marion von Schröder. Mr Niemann was head of Ullstein from 1979 to 1986.

Speculation is also running high about how many of the 120 employees will move to the capital. A historic building on Friedrichstraße, modernised by British designer David Chipperfield at a cost of €10m (£6.9m), has been earmarked. Morale is at an all-time low, and further resignations among top management are predicted.

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