Barclays Seek Equity Partner For Hollinger Bid
The Barclay brothers are understood to be putting together a new deal to buy the Telegraph titles, which could include finding a private equity partner to launch a bid for all the assets of Hollinger International.
The reclusive media moguls were forced to rethink their options last week after a US court scuppered the £260 million deal they had with Lord Black to gain control of the Daily and Sunday Telegraph.
The judge in Delaware ruled that Black’s secret agreement to sell the titles represented a breach of his fiduciary and contractual duties to Hollinger International. He described Black as cunning and calculated before passing a ruling that invalidated the deal (see US Court Blocks Sale Of Hollinger To Barclay Brothers).
The Barclay brothers, who already own the Business and the Scotsman, can now join the formal auction process for the Telegraph newspaper assets, which is likely to include Richard Desmond’s Express Newspaper Group and Daily Mail & General Trust (see Desmond Mounts Two Pronged Attack On Telegraph Titles).
Ken Costa from UBS, the investment bank representing the reclusive brothers, told the Sunday Times: “We are considering the judgement. There are still a range of options that need to be evaluated.”
However, the Barclays are thought to be unhappy with the bidding price attached to the titles by investment bank, Lazards, which is running the auction. The brothers had originally bid £260 million, but rival offers are thought to be closer to the £550 million mark.
A bid for all of Hollinger International’s assets, which include the Jerusalem Post, the Chicago Sun-Times and the Spectator, would be around £800 million. There are also thought to be large tax liability concerns that would arise from the sale.
A court order is due to be implemented this week to safeguard the ongoing auction process. The existing deal tabled by the Barclay brothers will be suspended and the battle to take control of the Telegraph titles will begin afresh.
Meanwhile, It is understood that Richard Desmond has stepped back from a fight to take control of the Westferry printing plant he shares with the Telegraph in London after being assured there has been no change in control at the group (see Desmond Mounts Two Pronged Attack On Telegraph Titles).
Hollinger International: www.hollingerinternational.com
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