The Telegraph newspapers and Spectator magazine could be sold, after a unit of Lloyds Banking Group Plc appointed receivers to a holding company and removed Barclay family members as directors of the media companies.
(Bloomberg) — The Telegraph newspapers and Spectator magazine could be sold, after a unit of Lloyds Banking Group Plc appointed receivers to a holding company and removed Barclay family members as directors of the media companies.
Receivers at AlixPartners have been appointed over the shares of B.UK Limited, a Bermuda-based holding company that indirectly owns the Telegraph Media Group and the Spectator magazine, according to an Alix statement on Wednesday. The appointment comes after a breakdown in talks with Bank of Scotland, part of Lloyds.
The receivers have also removed Aidan and Howard Barclay, sons of the late David Barclay, as directors of the media properties.
“Despite further discussions, a resolution could not be reached,” AlixPartners said in the emailed statement. A resolution “may involve sales of the Telegraph and Spectator businesses.”
A spokesperson for Bank of Scotland described the decision to appoint receivers as “an act of last resort” and said “the bank remains willing to continue discussions to find a suitable solution.”
Any sale would reshape the UK’s media landscape. The titles — know for their conservative leanings — remain among Britain’s best-known and most influential outlets and are expected to draw plenty of interest.
“The receivership over the shares in B.UK Limited is in no way related to the financial health or performance of the Telegraph or Spectator businesses,” the AlixPartners statement said. “Neither the Telegraph Media Group nor the Spectator are entering administration.”
Read More: Telegraph Owner Shares Seized as Talks With Lloyds Faltered
The Barclay family is known for the sprawling business empire built by twins David and Frederick that spanned retail, media and some of the world’s most prominent hotels. The brothers bought the Telegraph group in 2004, which included the Daily Telegraph and the Sunday Telegraph, for £665 million ($828 million).
“We note the public statement made by AlixPartners,” a spokesperson for the Barclay family said in a statement. “We can confirm that discussions with Lloyds Banking Group remain ongoing. We hope to come to an agreement that will satisfy all parties.”
–With assistance from Katherine Griffiths.
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