Desmond makes his £500m bid for the Telegraph Group

February 11, 2004

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Desmond makes his £500m bid for the Telegraph Group

LONDON – Richard Desmond, owner of Express Newspapers, has finally submitted his bid for Telegraph Newspapers with a cash offer of more than £500m.

Desmond is also understood to have exercised his option to buy out Hollinger International from their joint venture printing operation West Ferry Printers, which he is allowed to do under a change of ownership at the Telegraph.

West Ferry prints the Express titles the Daily Express, Sunday Express and Daily Star, and the Telegraph titles the Daily and Sunday Telegraph.

There is expected to be a rush of last-minute bids submitted before tomorrow's 5pm deadline with offers being tabled by City stockbroker Collins Stewart, Daily Mail & General Trust and venture capital group Candover. Another venture capital firm Apax Partners is seen as another possible bidder.

Desmond's move on both the Telegraph Group and West Ferry Printers suggests what a lot of observers already feel that, with the Barclay brothers having agreed a £259m deal for Lord Black's 78% stake in Hollinger Inc, owner of Telegraph parent Hollinger International, the battle could already be over.

Desmond is using cash reserves and loans backed by the Bank of Scotland and Commerzbank.

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