Nadhim Zahawi, former Chancellor and current chair of the Barclay family-owned Very Group, has reportedly rallied a number of billionaire backers to sponsor a potential £600m bid for The Telegraph and The Spectator Magazine.
Zahawi is in discussions with Abu Dhabi-based International Media Investments (IMI), which holds a majority stake in Redbird IMI, according to Sky News.
Redbird IMI, a joint venture between Redbird, led by Jeff Zucker, and IMI, owned by the UAE Deputy Prime Minister, had swooped on the Telegraph Media Group in December last year.
Zahawi is said to be confident he can submit a competitive bid and wants to boost the Telegraph’s profitability by expanding in the US.
Nadhim Zahawi – photo credit: Lucy North/PA Wire
Runners and riders
Among those approached are property owners, the Reuben family, who also hold a stake in Newcastle United Football Club.
Zahawi has previously said that chairing The Telegraph would be an “honour,” following speculation that he might lead the newspaper group if the UK government had allowed Redbird IMI to exercise its call option to buy the titles.
But, in March, the government moved to introduce legislation aimed at thwarting foreign government ownership of British newspapers.
As a result, the right-leaning titles were put back up for auction, which drew at least seven first-round bidders last week.
Contenders include interest from media heavyweights like London-listed National World and News UK, as well as prominent British investors such as former advertising titan Lord Maurice Saatchi and Sir Paul Marshall, the ex-hedge fund manager behind the libertarian outlet UnHerd.
Daily Mail owner DMGT recently announced it was no longer considering a bid, citing fears it would encounter too many challenges from the UK’s competition regulator. Private equity giant CVC, which was reportedly mulling a deal, is understood to be out of the running.
Zahawi has declined to comment.