The Daily Mail & General Trust (DMGT) is understood to have entered the battle to take control of the Telegraph newspapers by teaming up with private equity firm Cinven.
The group, which publishes the
Daily Mail, has reportedly tabled a bid in excess of £550 million to Hollinger International, parent of the Telegraph newspapers and other titles.
The closing date for indicative offers was 5pm yesterday. Hollinger is believed to have received a range of bids, from Express Newspapers owner Richard Desmond, DMGT, UK stock broker Collins Stewart and a number of private equity companies including 3i, Candover and Apax Partners.
The submissions come one week before a court in Delaware will determine whether a rival dispoal plan should be allowed to proceed. Hollinger’s former chief executive, Conrad Black, has agreed to sell his controlling stake in Hollinger Inc – a 30% shareholder in Hollinger International – to the Barclay brothers’ Press Holdings International (see Hollinger Moves To Scupper Black’s Telegraph Sale).
The Barclays are particularly keen to take control of the Telegraph papers in the UK, but have also committed to retain Hollinger’s other papers, including the Chicago Sun-Times and the Jerusalem Post.
Lord Black, who controls 73% of the voting rights at Hollinger, claims that the deal with the Barclay brothers is irrevocable; the Board of Hollinger International will contest this in court. However, Black is counter-suing Hollinger International, claiming that it has illegally interfered with the agreed disposal to the Barclays (see Hollinger Moves To Scupper Black’s Telegraph Sale).
