Latest news with #Efune
Yahoo
5 days ago
- Business
- Yahoo
Former cabinet minister Zahawi pulls out of ‘British bid' for The Telegraph
The former Conservative cabinet minister Nadhim Zahawi has pulled out of the 'British bid' for The Telegraph led by the publisher Dovid Efune. The decision on Saturday leaves Mr Efune with an even steeper challenge as he attempts to gatecrash the planned takeover by the US private equity firm RedBird Capital. Mr Zahawi, his family and friends accounted for £60m of the £170m of equity it is understood had been committed to the bid. Even before losing the support, the consortium may have needed to raise a further £200m from shareholders to deliver the £550m bid he made alongside Mr Zahawi and the hedge fund manager Jeremy Hosking. Mr Efune has planned to complete the offer with borrowing against The Telegraph's profits. The approach has been rejected by IMI, a media company owned by the United Arab Emirates. It is selling The Telegraph after its own attempt to take control was blocked last year following an outcry over press freedom. That bid was made by a joint venture, RedBird IMI, in which RedBird was the junior partner having provided 25pc of the funding. Now the US private equity firm led by its founder Gerry Cardinale is in line to become the controlling shareholder in The Telegraph in a £500m deal. He has signalled ambitious growth and investment plans to deliver a 'global counterpunch to The New York Times' from the centre-Right of the political spectrum. Mr Cardinale is also in talks with at least three potential British minority co-investors, who include the owner of The Daily Mail, Lord Rothermere. After a proposed easing of the outright ban on foreign state shareholdings in newspapers, IMI is expected to retain a passive stake of up to 15pc. With longstanding business and political links to the UAE, it is understood that Mr Zahawi pulled out after becoming concerned at Mr Efune's handling of the bid. In recent days the publisher of the New York Sun website has sought to cast his approach as more British than RedBird's and sought to cast doubt on its sources of funding and ability to run The Telegraph successfully. IMI has come out in public support of Mr Cardinale's bid, however, and it has been unclear how Mr Efune expects to disrupt their agreement in principle. Mr Cardinale has said none of RedBird's funding for the deal is drawn from sovereign wealth. Mr Zahawi, who was Covid vaccines minister and briefly Chancellor, has played a significant role in the two-year saga over the ownership of The Telegraph. A friend of both the Barclay family, the previous owners, and senior figures in the UAE, he was part of setting up a complex debt repayment deal that was intended to deliver the company into the hands of RedBird IMI. It included a £600m linked to the Barclay family's online shopping business Very, which saw Mr Zahawi become chairman. Despite the failure of RedBird IMI's takeover of The Telegraph, he has persistently sought a role in its future. In recent months he has sought to put together a new bid that would help the UAE recoup its outlay. It is understood Mr Cardinale does not intend to involve Mr Zahawi. Mr Efune was unavailable for comment. In his most recent statements on the bid he said was confident he would be able to announce more investors soon. Mr Zahawi declined to comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
‘British bid' to gatecrash Telegraph takeover is rejected
An 11th-hour attempt to gatecrash the sale of The Telegraph with a 'British bid' has been rejected. The latest approach from Dovid Efune, which includes funding from the hedge fund manager Jeremy Hosking, has been ruled out, according to multiple sources. It valued the Telegraph at £550m but had only £170m of committed equity and required a level of borrowing that lenders would be unlikely to support, sources said. Mr Efune, the publisher of The New York Sun, has said he expects to reveal more backers soon as he seeks a 'beneficial resolution for all stakeholders'. He added that he had received no communication from the seller rejecting his bid. He has been pursuing control of The Telegraph for a year. He emerged from an auction in October as the preferred bidder but subsequently struggled to raise finance. In a development that creates more potential obstacles for Mr Efune, the firm appointed by IMI to run the auction, Robey Warshaw, has stopped work on it. Sources said the investment bankers expect the rival bid by RedBird Capital to proceed. The US private equity firm has reached an agreement in principle to acquire majority ownership of The Telegraph from IMI, the United Arab Emirates state media company. The deal values the company at £500m. Together, as the joint venture RedBird IMI, the pair were blocked from taking full control last year following an outcry over press freedom. It would have handed the UAE a 75pc stake. Mr Efune said he is undeterred by the latest action. He told The Telegraph: 'Our British bid is strong with upward momentum. 'We expect to announce new funding partners in the near future. We're more confident than ever that what we have to offer is a favourable pathway for the sellers, The Telegraph and journalism writ large.' The British-born entrepreneur acquired The New York Sun in 2021 after running The Algemeiner, a newspaper for the Hasidic Jewish community. He is casting his bid for The Telegraph alongside Mr Hosking and Nadhim Zahawi, the former Conservative cabinet minister, as the 'British bid' in contrast to RedBird's American roots. However, Gerry Cardinale, RedBird's founder, is in talks with at least three potential British minority co-investors, including Lord Rothermere, the owner of the Daily Mail. Following proposed changes to the law banning foreign state ownership of newspapers, IMI is expected to retain a passive stake in The Telegraph of up to 15pc. Mr Efune's chances of disrupting the transaction have appeared to be fading. This week on his X account, he appeared to seek divine intervention by posting 'stand still and see the salvation of the Lord', a quote from Exodus typically interpreted as an appeal to trust in God. The bid's remaining earthly hopes may rest on Mr Efune's efforts to stoke political opposition to RedBird and to Labour's proposed legal changes. His consortium appears further to the Right and more ideological than RedBird's, and has been seeking to exploit a Conservative split over the laws on foreign state ownership of newspapers. Tory leaders have said they will not oppose a 15pc limit but some of the party's peers intend to support a Liberal Democrat 'fatal motion' in the House of Lords. It is unclear how such opposition would deliver The Telegraph to Mr Efune's 'British bid'. Mr Cardinale has told senior managers at the newspaper that he is anxious to complete his takeover as soon as possible to end two years of ownership uncertainty and launch an ambitious growth and investment strategy. Once a deal emerges, a smooth regulatory process could mean The Telegraph is under RedBird's control by September. It would join a portfolio of media and sport assets that includes AC Milan, a significant stake in Liverpool FC and a film studio co-founded with Ben Affleck and Matt Damon. RedBird is also backing the planned $12bn (£8.9bn) takeover of the Hollywood giant Paramount, the owner of CBS in the United States and Channel 5 in Britain. If the Culture Secretary Lisa Nandy refers The Telegraph deal to the Competition and Markets Authority for a full investigation of competition and plurality concerns, the timeline would be extended by several months. She could also impose legal restrictions on Mr Cardinale's ability to work with Telegraph management in the meantime. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Yahoo
25-05-2025
- Business
- Yahoo
‘British bidder' for Telegraph vows to fight on
The leader of a bid to disrupt the £500m sale of The Telegraph to a consortium led by RedBird Capital Partners has vowed to fight 'to the very end'. Dovid Efune, the publisher of The New York Sun website, made an appearance on Sky News on Sunday to insist that his 'British bid for The Telegraph is alive and well, and not going anywhere'. Mr Efune has secured financial backing from the hedge fund manager Jeremy Hosking and Nadhim Zahawi, the former cabinet minister. They are attempting to contrast their Britishness with RedBird, an American private equity firm which is seeking to acquire The Telegraph alongside British minority investors. Mr Efune faces a steep challenge. On Friday RedBird announced an agreement in principle to take majority ownership of The Telegraph from IMI, the UAE's media investment arm. The British-born publisher said: 'What's been announced is an agreement in principle. And if the history of The Telegraph's ownership saga teaches us anything, it's that the ownership of The Telegraph and, frankly, any other crown jewel of British public life, will not be determined by means of a press release. 'The British public will yet have their say via their elected representatives, The Telegraph's staff and The Telegraph's readers will have their say, as will the rest of the British press.' RedBird IMI, a joint venture between RedBird and the UAE, majority funded by the Gulf state, was blocked from taking full control of The Telegraph last year following an outcry over press freedom. Now, RedBird's founder Gerry Cardinale is working to make RedBird the controlling shareholder, with IMI expected to retain a passive stake of up to 15pc. Mr Efune said: 'There are quite a lot of questions surrounding RedBird themselves, obviously – where does their capital come from?' Mr Cardinale, who also controls AC Milan and is set to become a major shareholder in the Hollywood studio Paramount, has said none of the money that RedBird will use to acquire The Telegraph will be drawn from sovereign sources. Mr Efune added: 'I suspect that because of all of these questions that surround it, there will need to be a public interest intervention, likely an in-depth investigation, which means the saga of The Telegraph could take another year to resolve.' Enders Analysis, a media industry research firm, said last week that Mr Cardinale's status as a newcomer to news publishing meant the regulatory process could be smooth and complete by September. The potential involvement of Lord Rothermere, the owner of The Daily Mail, as a minority shareholder alongside RedBird could complicate matters. But it is unclear how in practice Mr Efune hopes to disrupt the sale. IMI has publicly endorsed RedBird's planned takeover of The Telegraph, saying it will 'secure its future and enable it to thrive for years to come'. Mr Efune, who prior to acquiring the defunct New York Sun and reviving it as a subscription website was the publisher of Algemeiner, a Jewish community newspaper, has shown great persistence in his pursuit of The Telegraph, however. He emerged as the winner of an auction back in early October last year, but has struggled since to raise the necessary funds. Even now, by his own account Mr Efune's consortium has only 'the bulk' of the capital, although he has said he remains in talks with potential backers. His 11th-hour appeal for more time has come wrapped in the Union flag. He said: 'At the end of the day, I expect that most Britons would want to see The Telegraph in British hands should there be a choice – and there is a choice, a clear choice, and we are 100pc committed to seeing it through.' The approach won rhetorical support this weekend from Lord Ashcroft, the Conservative donor and publisher. In a post on X he said Mr Efune was 'seeking British investors for an alternative to foreign ownership … I wish him well'. Mr Efune has not said whether he envisages the UAE retaining a stake and has not always been so focused on securing British finance. He initially sought to raise funding from American hedge funds. They all declined to invest in his proposed deal after he was named preferred bidder. In November it was reported that Sir Mohamed Mansour, the Egyptian-born billionaire and former Conservative party treasurer, was in advanced discussions to bankroll the bid. A former minister under the dictatorship of Hosni Mubarak, Sir Mohamed ruled out participating, following questions from The Telegraph. They covered topics including the regulatory scrutiny his political past and business interest might face. Mr Efune then turned to Leon Black, the billionaire former boss of the Wall Street giant Apollo Global Management. Mr Black pulled out of detailed discussions to back the bid after The Telegraph asked questions about potential regulatory scrutiny of his regrettable relationship with the paedophile financier Jeffrey Epstein, and legal problems related to it. These incidents appear to have frustrated Mr Efune, who on Friday complained that the 'turbulent undertaking' of raising finance had faced 'unwanted interference'. One possible tactic for Mr Efune's consortium is a legal challenge against the Government's handling of The Telegraph if and when it decides to approve the RedBird takeover. Mr Hosking is said by those who have worked directly with him to have an unusually strong appetite for litigation. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
23-05-2025
- Business
- Yahoo
Thwarted Telegraph suitor Efune says 'British bid is best'
The British-born newspaper-owner whose takeover of The Daily Telegraph appears to have been thwarted by a £500m deal with RedBird Capital Partners has called on the title's stakeholders to rally behind his bid instead. In an opinion piece to be published later on Friday, Dovid Efune, publisher of The New York Sun, will say that his offer is "now within sight of the finish line, with the bulk of the needed funding committed". Mr Efune has been assembling a bid for the right-leaning newspapers for months, with a series of funding options having been explored. Money latest: He now has backing from Nadhim Zahawi, the former Conservative Cabinet minister whose interest in the Telegraph was revealed last year by Sky News, and Jeremy Hosking, a prominent and wealthy City investor. In his opinion piece, Mr Efune described the Telegraph as a "crown jewel", adding that British journalism was the envy of the world. "It is no coincidence that a meaningful portion of America's largest newsrooms are run by British journalists," he wrote in a piece shared exclusively with Sky News. "These include the Wall Street Journal, the Washington Post and CNN. "You might say that journalists, editors and journalism writ large are among Britain's greatest exports." Referring to the Barclay family, which owned the Telegraph for about two decades, Mr Efune said the newspapers had "functioned as something of a piggy bank for its previous owners, and as a useful form of real estate collateral". "The Telegraph's achievements and advancements despite these handicaps are impressive. But it deserves better," he wrote. Mr Efune said the £500m RedBird takeover - which is likely to involve minority ownership stakes for Abu Dhabi state-backed IMI and Lord Rothermere, the Daily Mail proprietor - had "significant hurdles to overcome". "Since The Telegraph first came on the market I've dedicated much time and resources to finding a solution," he said. "Some details of these efforts have become public. Much has not. "In particular, I've sought to recruit the best-suited investor group to step into the fray. "That means fully aligned partners, committed to the work of unlocking The Telegraph's significant potential." He described the process as "a turbulent undertaking" which had "faced unwelcome interference along the way". "Our group is unique in that, firstly, it is distinctly British, with, as of this moment, the leadership and vast majority of funders being British citizens. "I, for one, was born in Manchester and raised in Brighton. "My family owes a great debt of gratitude to this country. "My grandmother was saved by Britain's grace and welcome at the age of nine, fleeing Nazi Germany on the Kindertransport." Read more from Sky News:Energy price cap to fall by 7%Taxpayer loss on RBS bailout revealed Mr Efune said his family had made a significant contribution to the UK, with his grandfather, Peter Kalms, helping to build the electrical goods retailer Dixons into a household name. "My great uncle Michael was killed as a tail-gunner in a Lancaster Bomber over Germany. Mr Efune described his backers as "accomplished British patriots who care deeply about The Telegraph's future". "Our acquisition group is also distinctly devoted to journalism," he wrote. "We don't come with a team of financial engineers or restructuring gurus. "We're seasoned and committed newspaper builders, and have a detailed and clear vision for The Telegraph's growth. We will pursue it vigorously. "This includes specific and in some cases significant improvement strategies on the nuts and bolts of each of the primary revenue pillars of the business. "In our view, the oft-heard moniker "Torygraph" far undersells this opportunity. "In its soul, the paper that braved the Blitz and trumpeted the wartime speeches of Churchill bears a far higher calling. "It is independent, pugnacious, meticulous, unapologetic and free. "It is the journalistic bulwark of Western civilisation and a living reminder of Britain's great gifts to humanity. Mr Efune added that in a world characterised by turbulent geopolitics, "the need for The Telegraph's elevation couldn't be greater". "Many beacons of the Western press have dimmed, and we are all poorer as a result. "The Telegraph's time is now. Its horizons are endless. "We're confident our British group represents the best custodianship of this national treasure by some distance."
Business Mayor
18-05-2025
- Business
- Business Mayor
Efune launches fresh Telegraph bid with Brexiter businessman Hosking
Stay informed with free updates Simply sign up to the Media myFT Digest — delivered directly to your inbox. New York Sun owner Dovid Efune is launching a fresh effort to buy the Telegraph with backing from multimillionaire Brexit backer Jeremy Hosking and former UK chancellor Nadhim Zahawi in what has been dubbed a 'British bid' for the newspaper. UK-born Efune was in exclusive talks to acquire the newspaper from Abu Dhabi-backed RedBird IMI until December, and has since remained in discussions with bankers on the deal despite the lack of guaranteed funding. Efune's attempts to secure money for his bid from US funds failed, leaving RedBird boss Gerry Cardinale to try to take full control by buying out IMI. But Efune has now secured financial backing from Hosking, a British investment executive, according to two people familiar with the matter. Hosking donated heavily to the Reclaim and Conservative parties in the past, as well as to Vote Leave before the 2016 Brexit referendum. Zahawi, who was involved in RedBird IMI's move to take control of the Telegraph last year, has also backed Efune's bid, adding rightwing political support. Aryeh Bourkoff at LionTree, who is advising Efune, has spent time in the UAE in the past talking to IMI, the Abu Dhabi investment group that controls the Telegraph alongside US-based Redbird, according to people close to the situation. A person with knowledge of Efune's latest offer described it as the 'British bid' as 'the vast bulk of the funding comes from Brits and Efune himself is obviously British'. They added: 'Jeremy Hosking is a major backer, as is Nadhim Zahawi.' Efune will travel to London next week for meetings about the deal, they said. Hosking has already met senior Telegraph management, according to a separate person with knowledge of the situation. On Saturday, a person familiar with Efune's plans told the Financial Times that he 'has been working quietly over the past months and has now secured commitments from a group of backers amounting to a significant bulk of the equity capital required'. Hosking told the FT: 'I fully support the Efune bid as they are appropriate owners of this British asset, and have already offered financial backing. If it succeeds I am confident I will be significantly involved.' Zahawi declined to comment. RedBird IMI did not respond to requests for comment. Many in the industry had assumed that Cardinale has the advantage in the battle for control of the Telegraph. He has also held talks with other UK-based investors and media groups, including Lord Rothermere's group that owns Telegraph rival the Daily Mail. The dealmaking saga began two years ago when Lloyds Banking Group seized control of the Telegraph after the Barclay family, which had owned it since 2004, left the bank with unpaid debts. RedBird IMI took control of the media group for about £550mn but its bid to convert this into full ownership was blocked by the then-Conservative government owing to concerns about a foreign state-backed fund owning an influential newspaper. The UK government this week confirmed plans to increase the cap on foreign state ownership of British national newspapers to 15 per cent, meaning that IMI could in future retain a small stake in a Cardinale-led group.
