German eyes on Fleet Street

GERMAN newspaper publishing firm Axel Springer is considering a bid for The Daily Telegraph and its Sunday stablemate if their embattled owner, Lord Black, is forced to sell.

Springer's lawyers are examining the legal complexities involved in a cross-border bid for the Telegraph group, part of Black's New York-based Hollinger International publishing company.

The Berlin-based company, still majority owned by the executors of founder Axel Springer, does not have operations in the UK, though it did consider buying the Daily Mirror five years ago.

The group publishes Europe's biggest-selling daily newspaper, Bild, as well as the more upmarket Die Welt. Most of its £1bn annual newspaper sales are in Germany.

All its publications operate under a set of guiding editorial principles, one of which is that they should 'further the unification of Europe'. This would sit uneasily with the editorial line of the eurosceptic Telegraph titles.

Axel Springer said that as it was not clear whether Hollinger would sell its titles, it would not comment further.

Black stepped down as chief executive of Hollinger International last month after it was revealed that an unauthorised payment of £18.6m was made to him and other top executives at Hollinger International and Hollinger Inc, the Toronto-based holding company.

Both companies are now being investigated by the US stock market watchdog, the Securities & Exchange Commission.

Black remains non-executive chairman of Hollinger International and of Hollinger Inc, through which he controls a majority of shareholders' votes in Hollinger International.

Hollinger Inc has said it might be unable to meet its financial obligations if it is required to pay back some of the money under dispute to Hollinger International.

Hollinger Inc has debts secured on its shares in Hollinger International and could be forced to sell them.

Investment bank Lazards has been appointed to examine the group's options, including the possible sale of the Telegraph group.

Among those likely to be interested in the titles are The Washington Post company; Daily Mail & General Trust, publisher of The Mail on Sunday and owner of This Is Money; Sir Anthony O'Reilly's Independent News & Media; venture capital groups Candover, Apax and 3i; the Barclay Brothers, who publish The Business; and Richard Desmond, owner of Express Newspapers.

Not all of Axel Springer's publishing principles would conflict with the Telegraph's. They include a commitment to support the Transatlantic Alliance and solidarity with America, to reject all political extremism and to uphold the principles of a free social market economy.