Telegraph Bids Go Head To Head In Final Furlong
The epic bidding process for the Telegraph newspaper titles entered its final stage yesterday as the deadline for finalised bids closed, with Axel Springer and media magnates the Barclay brothers emerging as the two front runners.
The bidding process for the titles has rumbled on for six months since the departure of Conrad Black as chief executive of publisher Hollinger International in November 2003 (see Black To Step Down As Chief Executive Of Hollinger).
Among the 11 parties thought to have tabled final bids for the titles are Daily Mail & General Trust, owners of The Business the Barclay brothers, German newspaper giant Axel Springer and several equity groups and venture capitalists.
Speculation today, however, suggests that with bids of between £500 and £600 million Axel Springer and the Barclay brothers have reduced the running to a head to head battle between the two publishing heavyweights. Elsewhere the Daily Telegraph itself has speculated that an unattributed “knockout” bid of £900m may have been tabled.
It had been expected that Springer would partner with Hellman & Friedman, a US-based venture capitalist group but reports in today’s Financial Times suggest that the company has instead opted for an independent, all cash bid for the Telegraph titles.
Earlier this month DMGT’s bid came into doubt following the company’s split from financial backer Cinven, although the publisher has now continued with a solo bid it could run into trouble if questioned by competition watchdogs (see Daily Mail Drops Cinven As Partner For Telegraph Bid).
A final decision is expected on the winning bid next week, although with the option open for bidders to cherry pick particular parts of the Hollinger portfolio the saga could yet continue, with scope for further auctions of the company’s remaining assets in the future.
Telegraph Group: 020 7538 5000 www.telegraph.co.uk
Recent Related Stories from NewsLine Hachette Teams With Teen Portal In Advertising Deal Newspaper Advertising Momentum To Continue In 2004 Telegraph Holds Key To Europe With Property Supplement
Subscribers can access ten years of media news and analysis in the Archive