Feb 20 (Reuters) - Axel Springer has become a new backer of a bidding consortium for the Telegraph Media Group led by Dovid Efune, which has submitted a 500 million pound ($673.85 million) offer if
Axel Springer Supports $675M Telegraph Bid, Rivals DMGT Proposal
By Yamini Kalia
Feb 20 (Reuters) - Axel Springer is backing a new bid for Britain's Telegraph Media Group submitted by U.S. publisher Dovid Efune, a spokesperson for the German group and a source said on Friday, challenging DMGT's proposed acquisition of the Telegraph.
DMGT's Initial Offer for Telegraph
DMGT, owner of the Daily Mail, had struck a 500 million pound ($675.35 million) deal in November to buy the Telegraph and create one of the most powerful right-leaning media groups in Britain, but the deal is facing regulatory scrutiny on public interest and competition concerns.
A consortium led by Dovid Efune, publisher of The New York Sun, has submitted a new bid that is also valued at around 500 million pounds but with a larger upfront cash payment than DMGT's offer, minimal debt portion and no expected regulatory hurdles, a source with knowledge of the offer told Reuters.
The Financial Times first reported earlier on Friday the new bid by Dovid Efune and Axel Springer's backing.
Telegraph Media Group's Response
Telegraph Media Group and its owner RedBird IMI did not immediately respond to Reuters' requests for comment.
The signed backers of the new bid now include Axel Springer, investors Jeremy Hosking and David Smith, and another high net worth British investor, the source said.
DMGT's bid, if approved, would bring the Daily Telegraph and Sunday Telegraph newspapers under the same umbrella as the Daily Mail, Mail on Sunday, Metro and The i Paper.
Currency Conversion Details
($1 = 0.7404 pounds)
(Reporting by Yamini Kalia with additional reporting by Sri Hari N S in Bengaluru; Editing by Krishna Chandra Eluri and Susan Fenton)
