New York billionaire drops out from major UK newspaper deal
A top investment firm exits talks to fund Telegraph newspaper purchase‚ raising questions about the deals future. More potential funders might step in as current exclusivity period nears its end
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
