The high-stakes Telegraph newspaper deal faces new hurdles as Portage Partners/10 East (a well-known investment company) steps away from funding talks. Sam Klatt‚ the firms chief investment officer confirmed their non-participation in this mega-deal
A source close to Dovid Efune‚ the NY Sun publisher leading the bid says theres strong backing from other sources: “dozens of funding parties are involved in these discussions“. However Hudson Bay Capital and Oaktree Capital have already ended their involvement in the £500m-plus transaction
The deals complexity increased when RedBird IMI (which bought the paper last december) entered talks with Efune without secured funding - an un-common move in such big deals. Several well-known figures tried to buy the paper:
- Lord Saatchi‚ advertising expert
- Sir Paul Marshall‚ hedge fund founder
- National World‚ local news publisher
Recent developments show Alvarez and Marsal consultants joining for due-diligence; while RedBird IMI (75% Abu Dhabi-backed) might consider keeping £128m of its original investment. The ownership question - now in its 18th month - connects to wider political issues‚ as Sir Keir Starmer plans his UAE visit next month
The government faces tough choices about foreign-state ownership rules; which could affect how the deal moves forward. Secondary laws that might allow some state money in newspaper ownership still wait for approval