Barclays complete Telegraph buy

The Barclay brothers this morning finalised their 665m deal to buy the Telegraph Group, opening the door for Express Newspapers owner Richard Desmond to launch a bid to buy out West Ferry.

Significant investment in new and upgraded presses is expected at the all-Goss plant once West Ferry's future owner is settled. Any new kit would be likely to include mid-size Berliner presses in preparation for The Guardian's planned format change in 2006.

 

Under a clause in the joint ownership contract for the print plant between the Telegraph Group and Express Newspapers, a change in control at either group opens a 42-day window in which the other can launch a bid to buy the whole printer.

 

Express Newspapers has yet to reveal whether it will launch a bid although Desmond has previously tried to wrest control of the whole of West Ferry.

 

In February, he attempted to trigger the change of control clause, even though the Telegraph Group had not yet changed hands (PrintWeek, 11 February 2004). In an interview with The Guardian in March, he then said that any new owner of the Telegraph Group would not be able to print at West Ferry after its contract runs out in 2009 .

 

The completion of the Barclays' deal for The Telegraph, The Sunday Telegraph and The Spectator came after a Delaware judge last night dismissed Lord Black's attempt to block the sale as "piteous".

 

Black had argued that the Telegraph Group represented "substantially all" of Hollinger International's assets, and its sale should therefore be subject to a shareholder vote.

 

But in a damning 92pp report on the case, judge Leo Strine rejected Black's plea and condemned the peer's conduct, describing certain business dealings as "Orwellian" and saying that he had no "natural right" to influence the sale.

 

Hollinger International acting chairman Gordon Paris said that the Telegraph Group's new owners were "committed to ensuring the long-term success of the publications".

 

The 18-press West Ferry plant, based on the Isle of Dogs in London's Docklands, produces six national daily titles including The Financial Times, The Guardian, The Star and The Sport.

Story by Josh Brooks