Former advertising mogul, Lord Saatchi, has enlisted the help of investment bank Lazard to advise him on a potential takeover of The Daily Telegraph. The Conservative peer is also working with Lady Lynn Forester de Rothschild, a former director of The Economist Group, in this endeavor.
Lazard’s involvement is expected to give Lord Saatchi an advantage in the auction for the Telegraph titles, with a deadline for indicative offers set for Friday. The bank has a strong track record, having aided Lloyds Banking Group in recovering a £1bn-plus loan from the Barclay family.
The recruitment of Lazard comes after Daily Mail & General Trust, the publisher of the Daily Mail, announced last week that they would not be bidding for the Telegraph. While Lord Saatchi has been in talks with potential financial backers for several weeks, details of his offer are still unclear at this time.
Lord Saatchi, who co-founded the advertising agencies Saatchi & Saatchi and M&C Saatchi, declined to comment when contacted by Sky News.
The auction for the Telegraph titles and The Spectator magazine was launched by RedBird IMI, a state-backed vehicle from Abu Dhabi, which was set to take control of the assets. However, government intervention halted their plans over concerns of a foreign state owning a prominent national newspaper.
Sky News previously reported that Sir Paul Marshall, a hedge fund tycoon and leading contender to buy the Telegraph, may not submit an offer. Other potential buyers include David Montgomery’s National World and RedBird IMI itself, along with other investors.
The future of the Telegraph has been uncertain for over a year, after Lloyds Banking Group took control of its parent companies when the Barclays failed to repay their debt. The Barclays still own other assets, such as online retailer Very Group.
The auction is being advised by Raine Group and Robey Warshaw, with doubts lingering about whether RedBird IMI will be able to recoup the £600m they paid for the call option to acquire the Telegraph. There is also speculation that the newspapers and The Spectator could be sold separately, with media mogul Rupert Murdoch reportedly interested in acquiring the political magazine.
Lazard has been contacted for comment on their involvement in the auction.
