BRITAIN: Billionaire brothers David and Frederick Barclay have won the battle for Hollinger International Inc.'s Daily Telegraph newspaper, agreeing to pay £665 million (€1 billion) for Britain's top-selling broadsheet.
The Barclays, owners of London's Ritz hotel and the Scotsman newspaper, edged out UK venture capital firm 3i and its US partner Veronis Suhler Stevenson in the final round of bidding.
The Barclays' winning bid comes six months after they agreed to buy control of all of Hollinger from its deposed chief executive, Conrad Black, for $468 million. That deal was blocked by a Delaware judge, leading to the auction of the Telegraph Group.
The Barclays and 3i had been asked for final offers on Tuesday morning by Hollinger's banker Lazard.
The Barclays, bidding via their private company Press Acquisitions Ltd, clinched the deal after a meeting of the Hollinger board's corporate review committee late on Tuesday.
"This is the first day of a new life for the staff of the Telegraph Group, who have endured months of uncertainty with great resolve," said Telegraph Group Chief Executive Jeremy Deedes.
Attention now shifts to Conrad Blackwho was ousted over millions of dollars in disputed payments and sued by Hollinger along with other executives for $1.25 billion.
He remains the company's controlling shareholder and could seek veto power over the sale, an issue that would have to be decided in court.
A spokesman for Hollinger said the company contends that the sale of the Telegraph does not require shareholder approval.
Black's holding firm issued a statement saying the sale "involves the bulk of the company's assets and therefore clearly requires the approval of the company's shareholders."
The statement, referring to a tentative $18 per share offer that the Barclays made to Hollinger in January, said the company's financial advisers "assumed an obligation to deliver greater value to shareholders. Their faltering strategic process has failed to do so."
Hollinger said the final price tag for the Telegraph Group, which includes the Daily Telegraph, Sunday Telegraph and the Spectator magazine, was £729.5 million, including the £64.5 million on the group's balance sheet. It will use a portion of the proceeds to pay down debt.