Barclay Brothers Withdraw £260 Million Telegraph Bid
The Barclay brothers have withdrawn their £260 million offer to buy Conrad Black’s stake in Hollinger Inc, in a move that exacerbates the uncertainty surrounding the Daily and Sunday Telegraph.
The decision to cancel the bid was something of a foregone conclusion after a US court last week stopped Black from selling his majority stake in the company to the Barclay brothers, who also own the Business and the Ritz Hotel (see US Court Blocks Sale Of Hollinger To Barclay Brothers).
However, the reclusive Barclays are not believed to have ruled out bidding for all the assets of Hollinger International, which include the Jerusalem Post, the Chicago Sun-Times and the Spectator.
The brothers will face tough competition from Lord Rothermere’s Daily Mail & General Trust and Richard Desmond’s Express Newspaper Group. A number of venture capitalists and private equity firms have also submitted bids to investment bank, Lazards, which is handling the sale of Hollinger International’s assets (see Rival Bidders Prepare To Move On Telegraph Titles).
The withdrawal of the Barclay brothers’ bid will intensify the cash crunch at Hollinger Inc, which is understood to have missed a £4 million debt payment on Monday. The company is trying to find a way to make the payment within 30 days, after which it will be in default.
The funding crisis stems from a feud between Hollinger International and Black, who was recently forced out as chairman and chief executive after the company accused him of receiving millions of pounds in unauthorised payments (see Barclay Brothers Agree Telegraph Takeover Deal).
The battle for control of Hollinger’s newspaper assets took an unexpected turn earlier today when it emerged that Richard Desmond, owner of the Express Newspaper Group, had sold off his soft porn titles for an estimated £20 million in an attempt to improve his chances of buying the Daily Telegraph (see Desmond Pawns Adult Magazines For Telegraph Bid).
Hollinger International: www.hollingerinternational.com
Recent Newspaper Stories from NewsLine Daily Mirror Coverprice To Rise As Group Profits Increase News International Extends Sale Of Tabloid Times Guardian And Observer Launch Digital Editions
Subscribers can access ten years of media news and analysis in the Archive