Proactive Investors - A London-listed vehicle backed by the former chief of Mirror newspapers, David Montgomery, has compiled a list of stockbrokers to advise on a possible acquisition of The Daily Telegraph, according to reports.
Lloyds Banking Group PLC (LON:LLOY) is organising a sale of Telegraph Media Group and The Spectator after seizing control of the assets from the Barclays (LON:BARC) family. The deal is expected to be run by Goldman Sachs (NYSE:GS).
National World PLC (LON:NWOR), Montgomery’s listed vehicle, is said to be in talks with stockbrokers Cavendish Capital Markets and Peel Hunt Ltd (LON:PEEL) around financing a possible deal, Sky News reported.
Last month, the vehicle said it would “consider participating” in the auction of Telegraph Media Group but would reportedly leave The Spectator magazine out of any deal.
Montgomery’s existing broker Dowgate Securities, and corporate finance adviser Rothschild, are expected to be hired to act on any potential bid.
Daily Mail owner Lord Rothermere is also reported to be bidding for the media group in a deal that could be financed by investors in the Gulf, while the Barclay family could also bid to take back the assets with help from Middle Eastern investors after proposing to buy back £1 billion of debt owed to Lloyds.
Hedge fund manager Sir Paul Marshall has meanwhile lined up Citadel billionaire Ken Griffen and Paul Zwillenberg, a former chief executive of the Daily Mail publisher, as advisers for a possible bid.