Lord Rothermere, the chairman of the Daily Mail-owner Daily Mail and General Trust (LSE:DMGT) (DMGT), is working with investors to table a bid for the purchase of the Telegraph, which would make it one of the biggest media proprietors in Britain.
Having delisted DMGT and taken it private early last year after reaching a deal with private investors, Rothermere is speaking with funds in the Middle East to produce a bid, which according to City analysts would not see any individual investor take more than a 20% stake in the Telegraph titles.
A DMGT spokesman said: "We have been engaged with many parties over the possible synergies between DMG Media and the Daily Telegraph and have registered our interest with Lloyds [Banking Group] but we have no formal plans and there is no consortium.”
DMGT would be required to work with Goldman Sachs (NYSE:GS), which is brokering the auction, to help negotiate a deal with current owner Lloyds Bank.
The lender took over the business, valued at around £600 million, in June after it seized control of a Bermuda-based holding company, owned by former proprietors the Barclay family, which acted as the parent firm to the Telegraph and the Spectator.
Auctions begin in autumn and Rothermere is reportedly open minded about obtaining the Spectator but is said to be more focused on the Telegraph’s acquisition.