Hollinger Invites Barclays To Join Telegraph Auction
Hollinger International, the parent company of the Daily Telegraph, has confirmed that it is pressing ahead with the auction of its newspapers and will welcome any offer from the Barclay brothers.
The announcement follows a final order from a US court that prevented Lord Conrad Black from selling his majority stake in Hollinger Inc to the brothers for the £260 million agreed in a secret deal earlier this year (see US Court Blocks Sale Of Hollinger To Barclay Brothers).
Hollinger has always insisted that it does not oppose in principle a take-over by the Barclays, who also own the Scotsman and the Business. However, it did object to the pair’s proposed deal with Black on the grounds that it was harmful to minority shareholders.
The company said in a statement yesterday that it was “pleased with the preliminary interest displayed in its properties” and was pressing ahead actively with the strategic process led by investment bank Lazards.
Lazards has invited bids for the whole of Hollinger International, as well as for each of its assets, which include the Telegraph Group, the Chicago Sun-Times, the Jerusalem Post and the Canadian Newspaper division. However, the bank is thought to favour bids for the whole group to avoid significant tax liabilities.
It is understood that the Barclays are unhappy with the bidding price attached to the titles, which are thought to be attracting offers of around the £550 million mark. A bid for all of Hollinger International’s assets is likely to come in at more than £800 million.
The brothers will 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).
The battle for control of Hollinger’s newspaper assets took an unexpected turn earlier this week when it emerged that Richard Desmond had sold off his soft porn titles for an estimated £20 million in an attempt to improve his chances of buying the Daily Telegraph (see Desmond Pawns Adult Magazines For Telegraph Bid).
Hollinger International: www.hollingerinternational.com
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