THE race to land ownership of The Telegraph Group remains wide open City bankers insist in the face of reports that an Abu-Dhabi backed fund is close to taking control.
The group that also owns The Spectator has been up for sale for weeks after Lloyds Bank grew frustrated at a debt pile of £1 billion that owners the Barclays family had failed to pay down despite, reportedly, repeated promises.
Today The Telegraph itself reported that RedBird IMI, with a loan from the Manchester City owner Mansour bin Zayed Al Nahyan, would allow the Barclays family to repay the debts.
RedBird IMI, led by former CNN executive Jeff Zucker, would then take charge. It is assumed that an Abu-Dhabi backed deal would allow the Barclays to retain at least some level of interest in the business.Lloyds declined to comment.
Bankers point out that Goldman Sachs, which is handling the sale, is sure to wait until first round bids are submitted at the end of this month.
Observers note that Lloyds, which is being separately advised by Lazard, will want a clean deal done quickly. It does not want to be involved in the sale of such a sensitive media asset in the run up to a general election.
Senior Tories have asked deputy prime minister Oliver Dowden, business secretary Kemi Badenock and Culture Secretary Lucy Frazer to take a close look at any new owners.
A letter from MPs said: “Material influence over a quality national newspaper being passed to a foreign ruler at any time should raise concerns, but given the current geopolitical context, such a deal must be investigated."
The continued involvement of the Barclay brothers in any deal is likely to be unwelcome as far as Lloyds Bank is concerned.
Others likely bidders include DMGT, the Daily Mail newspaper empire, led by Lord Rothermere. Rothermere has lately made it clear a bid from him would not include money from the Middle East.
The Telegraph Group is valued at about £600 million.
