A potential takeover bid for The Daily Telegraph by Sir Paul Marshall, a prominent hedge fund tycoon, is facing uncertainty just days before the deadline for offers for the influential broadsheet newspaper. It has been reported that Sir Paul, who is also a major shareholder in the television news channel GB News, is considering dropping his interest in bidding for the Telegraph titles on a standalone basis.
Sources close to the matter have cautioned that the situation is constantly evolving and that Sir Paul may still choose to make an offer before the Friday evening deadline set by RedBird IMI, the Abu Dhabi-backed entity overseeing the sale process. They also mentioned that Sir Paul could potentially join a larger consortium bidding for the newspapers if a suitable one arises.
However, the growing doubts surrounding his involvement in the auction, in which he has been a key figure for the past year, could be a setback for RedBird IMI’s goal of recuperating the £600m it paid to obtain a call option intended to convert into ownership of the Telegraph titles and The Spectator.
An insider familiar with the matter stated that Sir Paul, who has been linked to The Spectator in the past year, is not willing to pay anywhere near the estimated value of £600m from the RedBird IMI transaction. It was reported that he had secured financing from Ken Griffin, the American founder of hedge fund Citadel, for a potential bid.
Last week, it was revealed by The Times that the publisher of the Daily Mail had withdrawn from the auction due to concerns over a detailed competition inquiry. Other potential bidders for the newspapers include David Montgomery’s National World and Lord Saatchi, the former advertising executive who has been working with financier Lynn Forester de Rothschild, as reported by Sky News earlier this month. Mediahuis, the Belgian media group, has also expressed interest.
RedBird IMI’s plans to take control of the Telegraph were hindered by government intervention following public backlash over the possibility of a foreign state effectively owning national newspaper assets. A spokesperson for RedBird IMI confirmed the launch of the auction last month, stating that they had thoroughly reviewed interested parties from around the world and that the level of interest remained strong.
The future of the Telegraph, historically known for its support of the Conservative Party, has been uncertain for over a year since Lloyds Banking Group took control of its parent companies after the Barclay family, its long-time owner, defaulted on debt repayments.
Earlier this year, Sky News reported that Raine Group and Robey Warshaw had been appointed to advise on the next phase of the Telegraph’s ownership. A source close to the Telegraph stated that its commercial outlook is promising, as evidenced by its recently published financial reports.
When approached for comment, a spokesperson for Sir Paul declined to give a statement, while Sir Paul himself stated that he would not be commenting on the matter while the auction is ongoing.
