Barclay duo revealed as Zen bidders

SECRETIVE multi-millionaires the Barclay Brothers are the mystery suitors for technology company Zen Research. David and Sir Frederick Barclay, whose businesses range from the Ritz hotel to The Scotsman newspaper, want to add Zen to their growing technology assets.

Controversial plans by Zen's chairman, Davidi Gilo, to take the business private were suspended last month when the company said it had received an approach that could lead to an offer.

Gilo, who owns 26% of Zen, had offered 10p a share, a bid that would have cost him £13m but left him with Zen's £36m cash pile and the business, which produces high-powered computer chips.

A bid from the Barclays is expected to value the company's shares at closer to the value of its cash pile, equivalent to about 20p a share. The shares closed last week at 10 3/4p valuing the company £19.4m.

It would be the latest technology investment by the Barclay twins, who last month bought online news service provider Netimperative from the receiver through their company ICP Europe. ICP is chaired by Andrew Neil, who is editor-in-chief of the Barclays' newspaper interests.

The brothers also control venture capital firm TecCapital, which was set up to invest in wireless communication businesses and has stakes in several companies. A bid for Zen is believed to be close, though it could yet fall through, leaving the way open for Gilo to pursue his offer.