It is understood that the firm has assembled a consortium to bid for the assets of Hollinger International, the newspaper empire formerly headed by troubled media mogul, Lord Conrad Black.
Reports suggest the broker plans to float the assets on the stock market immediately after acquisition, but has no intention of changing the editorial direction of the Daily or Sunday Telegraph.
The sealed bid opens the auction for the Hollinger International assets, which also include the Chicago Sun-Times and the Jerusalem Post. A deadline of 5pm on Thursday has been set for offers, but bidders are expected to delay showing interest until some of the legal issues surrounding the sale are resolved.
Hollinger International is currently suing Lord Black and his Hollinger Inc holding company for the misuse of funds and his attempt to sell his assets to the Barclay brothers. However, Black is counter-suing the group, which he claims has engaged in ‘illegal maneuvering’ in order to interfere with the sale agreement (see Black Counter-Sues Hollinger International Over ‘Illegal Interference’).
The Barclays believe they have an ‘irrovacable agreement’ to take control of the Telegraph titles. However, Hollinger International’s bid to block the deal comes before a court in Delaware next week, when the validity of the agreement will be decided.
Collins Stewart looks set to face stiff competition from a number of other interested parties including Lord Rothermere’s Daily Mail & General Trust and Richard Desmond’s Express Newspaper Group (see Rival Bidders Prepare To Move On Telegraph Titles).
Private equity group Candover looks likely to table an indicative offer of about £400 million and former Trinity Mirror chief executive, David Montgomery, is also understood to be putting together a bid with venture capitalists 3i.
Reports last week indicated that the family of Lord Hartwell, who sold the Daily Telegraph to Lord Conrad Black, is putting the final touches to a £500 million bid for the title before this week’s first offer deadline.
