I would be surprised were Mohamed al-Fayed really strong enough to take over these newspapers. I certainly hope he gets them though!
My guess would be that Apax Partners will buy them.
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***BEGIN ARTICLE***Fayed set to bid for Telegraph
James Robinson, media business correspondent Sunday November 30, 2003 The Observer
Harrods owner Mohammed Fayed is preparing a bid for the Daily and Sunday Telegraph newspapers. He is assembling a team of senior newspaper executives to work on an offer.
Fayed is believed to have contacted Lazards, the investment bank hired by Hollinger International - the Telegraphs' parent company - which is carrying out a strategic review that is likely to lead to a sale.
Fayed has also met Richard Desmond, owner of Express Newspapers and one of the favourites to buy the Telegraphs should they be put up for sale. Desmond and Hollinger each own half of the West Ferry printing plant, where the Telegraph papers are printed. Desmond has the right to buy the remaining 50 per cent if the Telegraphs change hands and hopes this will act as a 'poison pill' to deter rival bidders.
Fayed has told Desmond he will hand him a lucrative contract to print the Telegraph titles if he buys them.
Hollinger is listed on the New York stock exchange but the company is ultimately controlled by Conrad Black. Black resigned as chief executive of Hollinger two weeks ago following revelations that he and other Hollinger executives had received unauthorised payments from the company totalling $32.2 million.
They also received management fees of more than $200m over a seven-year period. Hollinger shareholders are expected to launch legal proceedings in America this week to win back the money.
Company investigators hired by Hollinger have discovered that the company helped fund Black's lifestyle, paying some of the running costs at his Park Avenue apartment and a share of the salaries paid to staff at his London house. It also emerged this weekend that Black received dividends of more than £54m from the Telegraph group last year, using the money to shore up Hollinger.
Fayed was rumoured to be interested in buying Express Newspapers three years ago. Owning a newspaper would give him the political influence he craves, although there is some question as to whether he could afford the Telegraph titles, which industry analysts value at £400-£500m.
The billionaire Barclay brothers, whose newspaper interests include the Scotsman and the Business, are also planning a bid. Other likely bidders include venture capital groups 3i, with former Mirror boss David Montgomery, and Apax Partners. DMGT, owner of the Daily Mail, has also expressed interest.
***END ARTICLE***