Daily Mail switches private equity partners for Telegraph bid

The Daily Mail & General Trust's bid for the Telegraph was thrown into confusion at the weekend after it emerged that the publisher has split from its bidding partner.

DMGT now has only 10 days to find a new partner for its bid or decide whether to carry on in the bid battle alone and take on the full risk of the acquisition being blocked by competition regulators.

The final stages of the auction of Hollinger International, the Telegraph Group's owner, comes amid swelling legal action against Conrad Black, its former chairman. Full details are expected today of a $1.25bn lawsuit from the current board of Hollinger International against Lord Black on allegations of racketeering.

Until this weekend, DMGT had been working on its bid for the Telegraph titles with Cinven, the private equity house, but it is now understood the publishing group is looking for another partner. The deadline for all "full and final" bids is 20 May.

Cinven and DMGT have parted company over the terms insisted on by Cinven. It was operating, in effect, as an insurance partner for DMGT's bid, automatically acquiring The Telegraph in the event that the Government objected to the deal and forced DMGT to sell it. Cinven was demanding a multimillion-pound fee to provide this service.

Lawyers for DMGT, however, believe it is likely to be an unnecessary expense, as the group has a strong case to put before competition regulators. DMGT insists it has the finances to bid for the papers outright, but it is thought to prefer another partnership with private equity, although this will be structured along different lines to the Cinven deal. DMGT has so far only shown interest in the Telegraph titles, but if its new partner was interested in all its assets, DMGT could be willing to take them on.

There are thought to be six other bidders for the Telegraph, including the billionaire Barclay brothers. All are expected to make a bid in this next round of the auction process. A price tag of £600m is thought to accompany the British newspapers, but some bidders are keen to acquire the whole group, which includes the Chicago Sun-Times and the Jerusalem Post.

The escalating legal battle between Lord Black and Hollinger, however, may make the auction of the Telegraph titles more complicated. Lord Black strongly denies any alleged wrongdoing and called the lawsuit by Hollinger an act of "tabloid journalism masquerading as law".

The lawsuit amends a more modest initial complaint seeking $200m in damages from Lord Black and is based on discoveries made by Richard Breeden, a former chairman of the SEC who is conducting an internal inquiry in to the company.

Barbara Amiel, Lord Black's wife, and Dan Colson, the former head of the Telegraph Group, have also been listed as defendants in the lawsuit. Neither has been accused of racketeering.

Suggested Topics
Life and Style
The Google Doodle celebrating the start of the first day of autumn, 2014.
tech
Arts and Entertainment
Sheridan Smith as Cilla Black and Ed Stoppard as her manager Brian Epstein
tvCilla Episode 2 review: Grit under the glamour in part two of biopic series starring Sheridan Smith
Sport
David Moyes and Louis van Gaal
football
News
Former Governor of Alaska Sarah Palin, left, with her daughter, Bristol
newsShe's 'proud' of eldest daughter, who 'punched host in the face'
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
Sport
New Zealand fly-half Aaron Cruden pictured in The Zookeeper's Son on a late-night drinking session
rugby
News
A cabin crew member photographed the devastation after one flight
news
Life and Style
Carol O'Brien, whose son Rob suffered many years of depression
healthOne mother's story of how London charity Maytree helped her son with his depression
Life and Style
food + drink
Arts and Entertainment
The cover of Dark Side of the Moon
musicCan 'The Endless River' carry on the tradition? See for yourself
News
Rob Merrick's Lobby Journalists were playing Ed Balls' Labour Party MPs. The match is an annual event which takes place ahead of the opening of the party conference
newsRob Merrick insistes 'Ed will be hurting much more than me'
Voices
A new app has been launched that enables people to have a cuddle from a stranger
voicesMaybe the new app will make it more normal to reach out to strangers
News
Liam Payne has attacked the media for reporting his tweet of support to Willie Robertson and the subsequent backlash from fans
peopleBut One Direction star insists he is not homophobic
Life and Style
healthFor Pure-O OCD sufferers this is a reality they live in
Life and Style
Sexual health charities have campaigned for the kits to be regulated
healthAmerican woman who did tells parents there is 'nothing to be afraid of'
Life and Style
fashion
Arts and Entertainment
The John Peel Lecture has previously been given by Pete Townshend of The Who, Billy Bragg and Charlotte Church
musicGodfather of punk will speak on 'free music in a capitalist society'
News
peopleAt least it's for a worthwhile cause
News
Shoppers in Covent Garden, London, celebrate after they were the first to buy the iPhone 6, released yesterday
tech
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Media

Senior Account Executive / Account Executive

£25 - 30k (DOE) + Bonus & Benefits: Guru Careers: We are looking for an Accoun...

Account Manager / Sales Account Manager / Recruitment Account Manager

£25k Basic (DOE) – (£30k year 1 OTE) : Guru Careers: We are seeking a bright A...

Resourcer / Junior Recruiter

£15-20k (DOE) + Benefits / Bonus: Guru Careers: We are seeking a bright R...

Web Designer / Digital Designer

£25 - 40k (DOE) + Excellent Benefits: Guru Careers: We are seeking a Web Desig...

Day In a Page

A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments