German media company Axel Springer has officially expressed interest in buying the Telegraph, prompting the prospect of a bidding war for the newspaper group.
The Berlin-based media conglomerate, which was trumped by the Barclay brothers in a bidding battle for the Telegraph and the Spectator magazine in 2004, has notified bankers of its interest in joining the auction of Telegraph Media Group.
Axel Springer is one of Europe’s leading media groups, owner of assets including daily Die Welt and tabloid Bild, and has long had an eye on ownership of a trophy UK newspaper.
In 2015, the company was pipped by an
11th-hour bid from Nikkei, Japan’s largest media group, to buy the Financial Times. Nikkei ended up paying £844m.
Axel Springer has continued to show an appetite for deals. After losing out to Nikkei, it took full control of digital news site Business Insider, in a $442m (£362m) deal and acquired political news site Politico two years ago in a deal reportedly worth $1bn.
The company has registered its interest with Goldman Sachs, which is due to start the auction for Telegraph Media Group later this month.
While the expression of interest, first reported by Sky News, does not mean Axel Springer will ultimately table a formal offer, its presence heightens the prospect of a bidding war for the group.
Other potential bidders that have expressed interest include Lord Rothermere’s DMGT, owner of titles including the Daily Mail, Metro, the i and New Scientist, which has held talks with Middle Eastern investors about a joint bid.
Sir Paul Marshall, co-owner of GB News and founder of hedge fund Marshall Wace, is forming a consortium that includes American billionaire Ken Griffin, the founder of Citadel hedge fund.
Others lining up bids include former Mirror newspapers chief David Montgomery, who owns titles including the Scotsman and Yorkshire Post, Sir William Lewis, the former News UK and Telegraph senior executive, and the Czech billionaire Daniel Křetínský.
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Rupert Murdoch’s News UK, the owner of the Times, Sunday Times and the Sun, is understood to be weighing up a bid for the Spectator.
The Barclay family, which paid £665m for the titles in 2004, has held talks with backers from the United Arab Emirates in their attempt to regain control.
The family has made a number of offers to buy back the newspapers, which have so far been rejected, with the latest reportedly valuing the business at £725m.
Lloyds Banking Group seized control of the Telegraph and the Spectator in June after the Barclay family failed to reach an agreement over the repayment of more than £1bn of debt.
