Lord Saatchi, a prominent figure in the world of advertising and a key player in Margaret Thatcher’s rise to power, is reportedly considering forming a consortium to bid for The Daily Telegraph. This news comes as the deadline for offers approaches later this month.
According to sources, Lord Saatchi has been in discussions with Lady Lynn Forester de Rothschild, a former director of The Economist Group, to potentially launch a bid for the right-leaning newspaper. City sources have also revealed that they have approached several potential financial backers, although neither Lord Saatchi nor Lady de Rothschild could be reached for comment. It should be noted that there is no guarantee that they will ultimately participate in an offer.
Insiders have indicated that Lord Saatchi and Lady de Rothschild are working with investment bankers to develop a bid, but the identity of any financial investors remains unclear. Lord Saatchi, who co-founded Saatchi & Saatchi and later M&C Saatchi, is no longer actively involved in the advertising business which still carries his name. However, his agencies’ work for the Conservative Party in the late 1970s and 1980s is widely credited for the party’s electoral success during that time.
Last month, it was revealed by Sky News that interested parties in The Telegraph and The Spectator have been given a deadline of July 19 to submit indicative offers for the media titles. The auction of these assets is being led by RedBird IMI, a vehicle backed by the Abu Dhabi state, which had struck a deal earlier this year to take control of the assets. However, the government intervened, and the deal fell through due to concerns over a foreign state owning prominent national newspapers. The stance of the Labour Party on this issue is yet to be clarified.
Prospective bidders for The Telegraph and The Spectator are expected to include Sir Paul Marshall, a hedge fund tycoon, and Lord Rothermere, owner of the Daily Mail. David Montgomery’s National World and US-based RedBird are also likely to be among the interested parties. The fate of The Telegraph, which has historically been a strong supporter of the Conservative Party, has been uncertain for the past year after its parent company fell behind on debt repayments, resulting in Lloyds Banking Group taking control. The Barclay family, who had owned The Telegraph for almost two decades, have also faced financial difficulties with other assets. They still maintain control of Very Group, an online retailer.
The auction of The Telegraph and The Spectator is being advised by Raine Group and Robey Warshaw, known for their involvement in recent deals involving Manchester United and Chelsea football clubs. Despite the high price of £600m paid by RedBird for the call option that would have given them ownership of The Telegraph, doubts remain about whether they will be able to recoup their investment. There is also speculation that the newspapers and The Spectator could be sold separately, with media mogul Rupert Murdoch reportedly interested in purchasing the political magazine. RedBird IMI declined to comment on the interested parties on Saturday.
