LONDON: Qatari investors are in talks with the British newspaper group Daily Mail and General Trust to support a combined bid for the Telegraph Media Group, the Financial Times reported over the weekend.
DMGT, which owns the Daily Mail and the i and Metro newspapers, is looking to secure financing for a deal worth £500 million ($624 million).
TMG owns the Telegraph and Sunday Telegraph newspapers as well as the The Spectator magazines. Goldman Sachs and Lazard are reportedly involved in leading the sale with an auction set to begin in the coming weeks, according to reports.
Earlier this year, Lloyds Banking Group took control of TMG until a new owner was found, following a dispute between the high street lender and the Barclay family over debts owned to its subsidiary Bank of Scotland of allegedly nearly £1 billion.
Brothers David and Frederick Barclay bought TMG in 2004 for £665 million.
Potential Qatari investors would face competition from the UAE after it was reported Abu Dhabi-based RedBird IMI, headed up by Jeff Zucker, also held talks with DMGT and the Barclay family — former owners of the TMG — held talks with investors in the emirates to assist them in a bid to buy the group back.
“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,” DMGT spokesperson Sean Walsh said in a statement.
“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,” he added.
