Collins to re-enter Telegraph war

COLLINS Stewart Tullett could re-enter the auction for the Telegraph titles with a joint break-up bid for the whole of the parent Hollinger International.

The stockbroker, interested in the Daily and Sunday Telegraphs, is understood to have been approached by a party looking at Hollinger's Chicago Sun-Times and suggesting a joint offer for Hollinger.

Collins was ejected from the Telegraph auction last month after offering less than £500m for the titles. The auction goes into a second round this week with publisher Richard Desmond, Daily Mail and General Trust, who own the Evening Standard and This is Money, and a number of venture capitalists still in the running.

However, Hollinger says it is still weighing up its strategic options, from an outright sale of the entire group to no disposals at all.

Collins today revealed its net cash had grown from £41.5m to £183.5m after a strong year. It lifted 2003 pre-tax profits from £25.5m to £69.4m, boosted by the successful acquisition of money broker Tullett Liberty.

There was also good organic growth. Operating profits were up 27% on a pro-forma basis, thanks to recovering equities and lucrative volatility in interest-rate markets.

Chairman Keith Hamill described it as an outstanding year and said he was very optimistic about prospects.

A 5.25p final dividend makes a 7.75p total, up 15%.

Collins was hit last year by allegations of market abuse by former executive James Middleweek, and later launched a lawsuit against the Financial Times for its coverage of the affair.

'Both cases are proceeding satisfactorily but will not come to court for some time,' said Collins, which strongly denies the allegations.

Collins has set up a scheme for senior Tullett staff with options granted on 4.6 million shares with an exercise price of zero, using shares purchased in the market to prevent dilution of existing shareholders.