VERONIS SUHLER STEVENSON
THE least-known contender in The Daily Telegraph auction is Veronis Suhler Stevenson, a self-styled “media investment bank”, which last week emerged as junior partner to 3i.
VSS, based in New York, is no stranger to 3i or the UK media market. The US firm scored a major hit with its investment in Centaur Publishing, a trade publisher, from which it exited in the spring. It invested £20 million to take a strategic stake in Centaur five years ago, and floated the business on AIM at a valuation of £146 million — far above the £100 million valuation that rivals thought it could command. VSS itself said it made “just north of two and a half times” its original investment as a result of the March listing.
3i and VSS know each other. This year they merged their European telephone directories businesses to create Yellow Brick Road.
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VSS came on board because 3i needed a partner to help it to deal with the rising costs of the Telegraph auction. The British venture capitalist’s plan for the newspaper is to back its existing management, who, it is understood, will be asked to implement a cost-cutting programme devised by David Montgomery, its adviser, who is a former chief executive of Mirror Group.
THE BARCLAY BROTHERS
THE Barclay brothers have become such firm favourites to win the The Daily Telegraph that the question has become who will take over running the broadsheet once its takeover by them is done.
So far, the reclusive twins have given little indication who they would appoint as Telegraph Group chief executive and to the Daily Telegraph and Sunday Telegraph editorships.
Jeremy Deedes, the chief executive, is expected to retire soon after a takeover. His most obvious successor should be Andrew Neil, publisher of the Barclays’ other newspapers, but he has not been involved in the bid so far. One intriguing alternative is David Montgomery, former chief executive of Mirror Group. He is advising the rival bidder 3i, but could switch after the auction is over. 3i’s high bid suggests that he could help the Barclays to make their numbers add up.
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The job of Daily Telegraph editor is also likely to be reallocated. Although the recently appointed Martin Newland has won staff’s respect, few insiders will bet on his survival. A frequently touted replacement is Jeff Randall, the BBC’s business editor, but a likelier prospect is Dominic Lawson, Editor of The Sunday Telegraph, who has long eyed the Daily role.