Race For Telegraph Titles Could End This Week
The three-horse race to take control of the Telegraph titles is expected to reach its conclusion later this week amid widespread speculation that bids for the newspaper group could exceed £700 million.
The last three interested parties – the Barclay brothers, Daily Mail & General Trust and a consortium of investment firms – were asked to confirm their bids last week by Lazards, the investment bank running the auction.
Gordon Paris, the interim chairman of Telegraph parent company, Hollinger International, is also understood to be flying in to London tomorrow. One bidder said it expects a decision to be announced early this week.
A consortium comprising the Daily Mail & General Trust and venture capital group CVC is believed to have taken the lead in the race with a seemingly unbeatable cash bid approaching £700 million. Advisers close to the media group have played down reports that it was close to quitting the race (see Lord Rothermere Tables Knock-Out £700 Million Telegraph Bid).
However, both DMGT and the Barclay brothers have repeatedly said they are not willing to overpay for the Telegraph titles. It is understood that the Barclays and private equity firm 3i have tabled bids somewhere around the £650 million mark.
According to reports in the press over the weekend, one advisor to the bidders said: “Lazards have done it very well. We expect them to play us off against each other and there will be some last-minute horse trading.”
It is thought that the Barclay brothers, who own the Business and the Scotsman, are emerging as the most likely winners and would be able to find cost cuts through synergy with their existing UK newspapers.
Daily Mail and General Trust would also be able to make cost cuts, but could face full investigation by the competition authorities, given its ownership of the Daily Mail, the Mail on Sunday and the Evening Standard (see Big Guns Could Be Ruled Out Of Race For Telegraph Titles).
DMGT’s position in the race for the Telegraph titles looks increasingly strong after the newspaper group revealed a positive set of interim results showing rises in both profits and advertising revenue in the six months to April (see DMGT Sees Revenues Rise In Positive First Half).
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