The joint owners of West Ferry Printers are to meet at the High Court on 14 July, to decide who will arbitrate Hollingers buyout.


But Northern & Shell (N&S) could challenge the grounding of Hollingers letter of intent to buy the Docklands printers, which was agreed with former owners United News & Media.

Hollinger, owner of the Telegraph Group, issued its letter of intent to purchase N&S 50% stake in January.


The value of the plant has been a source of friction, as was the debt versus dividend issue, which was resolved in April (PrintWeek, 27 April).


But N&S could contest the letter of intent, as it was served from the West Ferry board, which was composed solely of Hollinger directors.


A source close to the Express said: "The West Ferry board issued their intent. but it only represented 50% of West Ferry ownership. The other 50% wasnt represented."


He added: "Part of the hearing is to decide whether the board had the right to make that decision. If it didnt, the Express will want its directors reinstated."


N&S is thought to favour Sir Anthony Evans QC to interpret West Ferrys value along legal lines, while Hollinger considers the matter to be one of accountancy.


Hollinger offered 30m for N&S stake, but Express boss Richard Desmond, who believed its worth was in the region of 65m, rejected this.


Telegraph chief executive Dan Colson said: "Were completely satisfied with our position, we followed the contract that was in place to the letter. The real purpose is to appoint the arbitrator, the rest is rather spurious."


Story by John Davies