Telegraph bid loser counts cost
THE winning bidder and the seller of the Telegraph Group were celebrating today but losing suitor 3i was counting the cost of running the Barclay brothers to the wire in the race for the prestigious newspaper titles.
The FTSE 100-listed investment group - which used bankers Greenhill, financial consultants Deloitte and lawyers Travers Smith Braithwaite for its bid - said the auction ultimately proved too rich for it. Abort fees are said to be about £1m.
'Although we thought it was an attractive opportunity, it was at a price we wouldn't go over,' said a 3i spokeswoman. Other bidders fell by the wayside earlier.
Meanwhile, Hollinger International interim chairman and chief executive Gordon Paris said: 'The Daily Telegraph, the Sunday Telegraph and The Spectator will be in good hands, with people who understand the business and will further enhance these great properties.'
Aidan Barclay, son of Sir David Barclay and chairman of bid vehicle Press Acquisitions, said he was 'delighted' with the deal, adding: 'We are looking forward to working with the management in running the business.'
Jeremy Deedes, deputy chairman and chief executive of Telegraph Group Limited, said: 'This is wonderful news, great news for the Telegraph and for staff at the group. This is what we were hoping for.'
He would not be drawn on what the deal meant for Daily Telegraph Editor Martin Newland. 'It would be impertinent of me to second-guess what the Barclays will try and do but I hope he will be given a proper shot at it,' he said.
