The hedge fund magnate and GB News shareholder Sir Paul Marshall is is close to securing a deal to buy The Spectator, one of Britain’s top political magazines.
According to Sky News, Sir Paul, co-founder of Marshall Wace, is the leading bidder for The Spectator, which is being auctioned alongside the Daily and Sunday Telegraph newspapers.
Sources say that Sir Paul’s investment firm, Old Queen Street Ventures, could close the deal as soon as this month.
If successful, this purchase would separate The Spectator from the ongoing sale process of the Telegraph newspapers.
While buying The Spectator wouldn’t stop Sir Paul from also bidding on the Telegraph, there are growing doubts about his interest in the newspaper auction.
The situation has been complicated by the collapse of a deal that would have let RedBird IMI, backed by Abu Dhabi funds, take over these media assets. The government blocked this move to prevent foreign state-backed ownership of national newspapers.
Several other bidders, including Rupert Murdoch, had shown interest in The Spectator before the deadline set by RedBird IMI’s advisers last month.
However, insiders warn that a deal between Sir Paul and RedBird IMI for The Spectator isn’t finalized yet and could still fall through.
What is the background to The Spectator sale?
The Telegraph and The Spectator magazine were put up for sale last year after Lloyds Banking Group seized them from the Barclay family, who defaulted on a loan of over £1bn.
Lloyds kicked off an auction process, but in a last minute twist, the Barclay family settled their debt with funds from Sheikh Mansour bin Zayed al-Nahyan. In exchange, they agreed to transfer ownership to the Gulf-backed consortium, Redbird.
But following backlash in the UK, the consortium halted its takeover and in April put the media firm up for sale.
Since then rumours have been swirling about who will buy the titles, with Sky News reporting last week that former UK chancellor Nadhim Zahawi was assembling a £600m bid.
The move followed Daily Mail owner DMGT pulling out of the race. DMGT, which also owns the Metro and the i newspapers, feared a “protracted regulatory process” amid potential competition concerns if it won the auction and said this could affect its ability to grow its own existing business.