Posted on 11/29/2003 6:42:46 PM PST by aculeus
Harrods owner Mohammed Fayed is preparing a bid for the Daily and Sunday Telegraph newspapers. He is assembling a team of senior newspaper executives to work on an offer.
Fayed is believed to have contacted Lazards, the investment bank hired by Hollinger International - the Telegraphs' parent company - which is carrying out a strategic review that is likely to lead to a sale.
Fayed has also met Richard Desmond, owner of Express Newspapers and one of the favourites to buy the Telegraphs should they be put up for sale. Desmond and Hollinger each own half of the West Ferry printing plant, where the Telegraph papers are printed. Desmond has the right to buy the remaining 50 per cent if the Telegraphs change hands and hopes this will act as a 'poison pill' to deter rival bidders.
Fayed has told Desmond he will hand him a lucrative contract to print the Telegraph titles if he buys them.
Hollinger is listed on the New York stock exchange but the company is ultimately controlled by Conrad Black. Black resigned as chief executive of Hollinger two weeks ago following revelations that he and other Hollinger executives had received unauthorised payments from the company totalling $32.2 million.
They also received management fees of more than $200m over a seven-year period. Hollinger shareholders are expected to launch legal proceedings in America this week to win back the money.
Company investigators hired by Hollinger have discovered that the company helped fund Black's lifestyle, paying some of the running costs at his Park Avenue apartment and a share of the salaries paid to staff at his London house. It also emerged this weekend that Black received dividends of more than £54m from the Telegraph group last year, using the money to shore up Hollinger.
Fayed was rumoured to be interested in buying Express Newspapers three years ago. Owning a newspaper would give him the political influence he craves, although there is some question as to whether he could afford the Telegraph titles, which industry analysts value at £400-£500m.
The billionaire Barclay brothers, whose newspaper interests include the Scotsman and the Business, are also planning a bid. Other likely bidders include venture capital groups 3i, with former Mirror boss David Montgomery, and Apax Partners. DMGT, owner of the Daily Mail, has also expressed interest.
Guardian Unlimited © Guardian Newspapers Limited 2003
Does anyone know Fayed's politics?
Yes.
If I may veer somewhat off-topic, they also have the world's best obituarists. Case in point.
In the Sunday Telegraph dated 5th May 2002, a ridiculous story appeared suggesting that I was in some way connected with an alleged plot to smuggle uranium. I have issued the following press release to express my concerns:5th May 2002
MOHAMED AL FAYED AND THE SUNDAY TELEGRAPH
Mohamed Al Fayed is to take immediate legal action following a damaging article published in today's edition of The Sunday Telegraph newspaper.
The Harrods owner had made clear to the newspaper prior to publication that their story, which is widely believed to be based on a hoax, was malicious and without substance. The Sunday Telegraph nonetheless still published a very prominent story which implied strongly that he was linked to shadowy figures allegedly involved in a plot to smuggle uranium.
"This is a scandalous, outrageous, fraudulent, and blatantly false attack on me", he said.
"My spokesman made it clear to the Sunday Telegraph that I knew nothing of this matter or any of the people involved and that the allegations against me were wholly spurious. Yet the newspaper still gave prominence to the story using my picture in front of a stockpile of uranium and suggesting that I did know something of the supposed scandal.
"I cannot understand how any newspaper could believe a story like this without any substance and give it such prominence.
"This is the latest in a campaign of deliberate smears against me orchestrated by the security services through this particular paper after I accused them of involvement in the murder of my son Dodi and Princess Diana.
"The Sunday Telegraph, whose editor Dominic Lawson I have frequently accused of being an MI6 stooge and closely related to the security services through his brother-in-law, has been the leading vehicle for this campaign."
"The publication of this malicious hoax shows that their campaign which, since the Paris tragedy, has involved the publication of literally hundreds of false stories, continues unabated. They continue to have no regard for the truth, fairness or decency."
The story, which refers to a mystery fax allegedly sent to Mr Al Fayed, was first published last weekend in the French newspaper Le Journal du Dimanche. That newspaper has already published a letter of correction from Mr Al Fayed stating that he had never received any such fax and had no knowledge of it, but will face further legal action this week which could result in substantial damages.
A Portuguese newspaper which repeated the story is facing similar action.
When Mr Desmond said: "They're all Nazis", Mr Deedes replied: "That is thoroughly offensive. Could you please sit down so we can start the meeting?""Don't you tell me to sit down, you miserable little piece of sh-t," Mr Desmond said, before he launched what witnesses described as "a stream of foul-mouthed abuse, both personal and general".
"After three years dealing with a bunch of crooks I'm starting to enjoy this," Mr Desmond said, adding, "You sat down with that f---ing fat crook and did nothing," in an apparent reference to Lord Black. He also called the Telegraph directors "f---ing c--ts" and "f---ing wankers" among other names in an expletive-ridden tirade.
When Mr Deedes said he didn't think the discussion - a monthly meeting of West Ferry's finance committee - was going to be productive, Mr Desmond paused before launching a fresh assault.
It was then he mimicked the Basil Fawlty walk, only for Mr Deedes to argue that it was unacceptable to refer to people as Nazis.
"Do you want to come outside and sort it out, then?" Mr Desmond sneered, before the Telegraph executives decided to abandon the meeting, scheduled to start at 9am.
At this point the Express directors - managing director Martin Ellice, finance director Rob Sanderson and publishing manager Chris Haslum - were told to sing Deutschland uber Alles.
And that, kids, is why whiskey for breakfast is a bad idea...
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