The Barclay brothers are out of the bidding for SMG’s Herald group of newspapers, according to press reports. It is understood that there are now only two suitors left in the running for the Scottish titles – US group Gannett, owner of Newsquest in the UK, and Independent News & Media, publisher of the Independent (see Solid Performance At SMG Gains Merrill Lynch Upgrade).
SMG is reported to have removed the Barclays from the auction in order to avoid political and regulatory problems arising from the fact that the brothers already own the
Scotsman.
SMG is hoping to raise around £200 million from the disposal of the business, which includes the Herald group of titles and eleven business to business and specialist consumer magazines. The billionaire Barclay brothers are understood to have tabled the highest bid, at around £230 million, but political sensitivity over the dominant position they would take in the Scottish paper market appears to have scuppered their plans.
