Express boss in cut-price bid to buy out Barclays at West Ferry

Richard Desmond, the owner of the Daily Express and Daily Star, is expected to offer the Barclay brothers as little as £30m to buy out their 50 per cent stake in their West Ferry printing joint venture.

Richard Desmond, the owner of the Daily Express and Daily Star, is expected to offer the Barclay brothers as little as £30m to buy out their 50 per cent stake in their West Ferry printing joint venture.

The stake in the print works was independently valued at £58m in 2002. But Mr Desmond, who is determined not to overpay for the Barclay brothers' holding, is planning to offer significantly less.

Mr Desmond will claim that, based on the same economic formula used to value the print works, West Ferry is worth much less than in 2002.

He will argue that the print works in London's Docklands - which prints the Telegraph titles, The Guardian, the Financial Times and the Express titles - is a depreciating asset.

The brothers will seek the highest price possible for their share in the print works. One source close to them said: "I'm sure they will have interesting negotiations." Both sides declined to comment.

Mr Desmond will exercise a change-in-control clause to assume full ownership of West Ferry after Hollinger International sold the Telegraph Group to the Barclay brothers.

He must notify the new owners of his intention to exercise the clause within 42 days of the change of control at the Telegraph Group, which officially took place on 30 July.

Mr Desmond has until 10 September to notify the brothers. It is understood that, since both sets of proprietors are on holiday, no notification has taken place yet. Representatives from both sides are expected to meet next month.

Telegraph managing director Hugo Drayton said recently that the print works needed between £30m and £100m of investment to replace ageing machinery.

The presses cannot print as many colour pages - which cost advertisers more than black and white pages - as more modern presses.

The accounts for 2003 also show that profits at the print works are declining. Pre-tax profits were £7.7m, last year, compared £13m in 2002. The accounts also reveal a pension deficit of £24m for last year.

If the two sides cannot reach agreement on price, there could be a repeat of the High Court battle three years ago when Hollinger International, then run by Lord Black of Crossharbour, tried to buy out Mr Desmond's stake after he took control of Express Newspapers.