Daily Mail said to be in cahoots with Qataris to splash over £500m on Telegraph group
The Daily Mail is reportedly in talks with Qatari tycoons to table a bid for the Telegraph group, which could cost north of £500m.
Daily Mail and General Trust (DMGT), owned by Lord Rothermere, is discussing additional equity to fund a bid for The Telegraph titles and The Spectator, which were put up for sale in June, according to a Financial Times report.
Lender Lloyds Banking Group seized control of the media group after previous owners, the Barclay family, failed to repay over £1bn in loans.
Shortly afterwards, the boards of the right-leaning UK papers appointed investment bank Goldman Sachs and law firm Linklaters to advise on their sale.
A DMGT spokesperson said: “Over the past few years we have been approached and have had talks with a number of Middle Eastern investors who have shown an interest in participating in a bid for the Daily Telegraph.
“To date we do not have a formal relationship with any investors; however, if we did, we would only do so if we have the majority of economic and equity risk, and the control needed to invest in the business and protect its editorial independence.”
DMGT is not the only one with eyes on the prize though – and it could face regulatory issues.
Media analyst Claire Enders, founder of Enders Analysis, has suggested Rupert Murdoch’s News Corp could be tempted by The Spectator.
Other media competitors Belgian publisher Mediahuis and National World, chaired by David Montgomery, could also join the auction, while private investors could include Paul Marshall, chairman of hedge fund group Marshall Wace.
The Barclay family is also apparently keen to see the group back in their hands and is rumoured to have tried to drum up support from UAE investors.
Analysts estimate the newspaper group could fetch between £400m-£700m with bidding set to kick off in the coming weeks.