Gannett Confirms Plans To Swoop On Telegraph Titles
American publishing giant Gannett has confirmed its intention to join the long list of potential bidders vying to take control of the Daily Telegraph from beleaguered Hollinger International.
Gannett, which is also one of the UK’s largest regional newspaper groups, is understood to have told analysts in New York that it is examining a number of assets that would fit with its existing operations.
The company’s chief executive, Douglas McCorkindale, revealed he was “looking at the books as is just about everyone”. Asked if the Daily Telegraph would be a good fit in the Gannett portfolio, he said: “At the right price, a lot of things fit.”
Hollinger International has invited bids for its range of assets, which include the Daily and Sunday Telegraph, the Jerusalem Post and the Chicago Sun-Times. However, investment bank, Lazards, which is managing the auction, is also keen to sell-off the entire company for a significantly higher price.
Earlier this year, former Hollinger proprietor, Lord Conrad Black, sold his majority stake in the company to the reclusive Barclay brothers for £260 million. However, the deal was blocked last month by a US court, which accused the beleaguered newspaper baron as having breached his fiduciary and contractual duties (see US Court Blocks Sale Of Hollinger To Barclay Brothers).
The Barclays are understood to be still interested in acquiring the Daily Telegraph and McCorkindale emphasised they should not be counted out. He said: “If the Barclay brothers want to step up to a big number in the UK, they will probably beat us.”
Lazards has set a deadline of 23 March for offers from potential bidders. Gannett looks set to face tough competition from Lord Rothermere’s Daily Mail & General Trust and Richard Desmond’s Express Newspaper Group. A number of venture capitalists and private equity firms have also submitted bids (see Rival Bidders Prepare To Move On Telegraph Titles).
Gannett: www.gannett.com
Recent Newspaper Stories from NewsLine Independent Ditches Broadsheet For Budget Special Guardian Considers Midsize Edition To Boost Sales Crisis Deepens As Black Ousted From Telegraph Group
Subscribers can access ten years of media news and analysis in the Archive