Express warns off Telegraph bidders

Any new owner of the <i>Telegraph</i> newspapers would have to look for new print sites, according to the owner of Express Newspapers Richard Desmond.

Desmond fired the first carefully placed warning shot across the bow of any potential bidder for the Hollinger-owned titles by claiming he would prevent them using the West Ferry print site in Londons docklands after their contract runs out in 2009.

Although the Telegraph Group and Express Newspapers jointly own the site, Desmond has the right to buy the remaining 50% stake in West Ferry if the Telegraph undergoes a change of ownership.

Although the Daily Telegraph and Sunday Telegraph are contracted to be produced at Docklands-based West Ferry until 2009, Desmond said that he would not renew the agreement.

In an interview with the Guardian newspaper Desmond said that he needs the print capacity for his own papers the Daily Star and Daily Express.

But Desmond is believed to be interested in making his own bid for the Telegraph Group, meaning his carefully placed interview could detract other potential bidders for the paper.

Industry sources suggest that although any new owner of the Telegraph Group could find spare print capacity across four or five plants to produce the papers in the M25 area, it represents a complex and unattractive option for a daily national newspaper group.

Another option would be to build a new print operation but this could cost around 300m.

The auction of the Telegraph Group has reopened after a US court blocked the sale of the papers to the Barclay Brothers. Conrad Black has left his role of Telegraph Group chairman.

Story by John Davies