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Lord Rothermere’s Daily Mail and General Trust have held talks with Qatari backers to back a joint bid for Telegraph Media Group, the bidder for Britain’s national newspaper seeking financial backing in the oil-rich Gulf latest example of .
DMGT, which owns the Daily Mail and Metropolis newspapers, is discussing increasing its stake to fund a bid for rival media group that could cost more than 500 million pounds, according to two people familiar with the matter.
Lloyds Banking Group, which has more than £1bn in debt, seized control of Telegraph Media Group from the Barclay family in June in order to recoup as much as possible in a sale funds. Media executives and rival groups have since held talks with Gulf investors to finance the takeover of the right-leaning broadsheet.
Sean Walsh, a spokesman for DMGT, said: “Over the past few years we have approached and negotiated with a number of Middle Eastern investors who have expressed interest in bidding for The Daily Telegraph. Talked.”
He added: “To date, we have not entered into a formal relationship with any investor; however, if we do so, it will only be if we assume the bulk of the economic and equity risk and have the controls necessary to invest in the business and protect its editorial independence We will only do this when we have the right to do so.”
Abu Dhabi’s RedBird IMI has also held talks to support a bid for The Telegraph, according to a person familiar with the matter. Redbird declined to comment.
Another person said the Barclays had also consulted with Emirati investors to back their bid to buy back The Telegraph.
The family has made repeated offers to buy back the newspapers confiscated from them, the latest offering Lloyds more than £600m, according to two people familiar with the matter. This has aroused the vigilance of competitors. The Barclays declined to comment on their latest offer.
The bank has also started discussions with the Barclays family about the future of Very Group, its multibillion-pound financial services and retail group whose holding company has guarantees related to Telegraph debt, the Financial Times previously reported.
Sir William Lewis, the former editor-in-chief of The Telegraph, is preparing to form a consortium to make an offer, which could include money from the Middle East.
The paper could fetch more than £500m in an auction overseen by Goldman Sachs, which is expected to begin in the coming weeks.
The British media industry is already part-owned by investors in the region, including a Saudi investor with stakes in London’s Evening Standard and The Independent.
Potential bidders for The Telegraph believe the British government would be comfortable with further Gulf media ownership, pointing to the ownership of English football clubs and the tension between Prime Minister Rishi Sunak and Saudi Crown Prince Mohammed bin Salman. Expect to meet.
DMGT said in its final set of results that it would seek to reduce its net debt over time, and analysts said any large acquisitions by the group would likely require additional equity from other investors.
DMGT could face regulatory issues, including competition objections given its strength in print newspaper advertising. One option is to sell at least some of the smaller games, one person said.
There may also be concerns about ownership, as both the Daily Mail and The Telegraph are strong parts of the UK’s right-leaning media.
Dozens of parties have expressed interest in selling ahead of the official auction, which is expected to begin in the coming weeks, according to people familiar with the matter.
Local newspaper publisher Nation World, founded by media executive David Montgomery, has confirmed it is considering a potential takeover bid for the paper.
Rupert Murdoch’s News Corp UK has expressed interest, according to people close to the group. Pro-Brexit hedge fund millionaire Sir Paul Marshall has also been linked to the bid. In addition, Czech billionaire investor Daniel Kretinsky is considering a takeover bid.
Additional reporting by Samer Al-Atrush and James Fontanella-Khan in New York
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