Hedge fund mogul Marshall strikes deal for The Spectator | Business News

Sir Paul Marshall, the hedge fund tycoon and GB News shareholder, is closing in on a deal to buy The Spectator, one of Britain’s most influential political media titles.

Sky News has learned that Marshall Wace co-founder Sir Paul has emerged as the leading candidate to buy The Spectator, which is part of an auction process that also involves the Daily and Sunday Telegraph newspapers.

Sources close to the process said the city’s financier vehicle Old Queen Street Ventures could close a deal to buy the magazine as soon as this month.

A deal for The Spectator, which was first published in 1828, would dissociate it from a simultaneous process that is underway to find new owners for the right-leaning Telegraph newspapers.

Informed people said Sir Paul’s purchase of The Spectator would not necessarily exclude him from the Telegraph sale, although there have been growing doubts in recent weeks about whether he would take part in the paper’s auction.

The fate of media assets was called into question by the collapse of an agreement that would have seen RedBird IMIa vehicle backed by Abu Dhabi state funding, take control of them.

The takeover failed after the government intervened to block the ownership of national newspapers by funds from foreign governments.

Several other bidders, including Rupert Murdoch, owner of The Times and The Sun, have also expressed an interest in buying The Spectator ahead of the deadline set by RedBird IMI consultants last month.

A person close to the process warned that a deal between Sir Paul and RedBird IMI for The Spectator has not yet been signed and could still fall apart.

It is not believed that he has formal exclusivity to purchase the title.

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A deal would likely value the magazine, which makes a seven-figure annual profit, at somewhere between £50m and £100m.

Edited by Fraser Nelson, the magazine is closely followed by Westminster politicians, while its annual summer party is usually attended by Britain’s most senior government and opposition figures.

It is chaired by veteran broadcaster and journalist Andrew Neil, who was quoted as saying earlier this year: “The issue of a foreign government owning media assets is a matter of public policy.

“With Marshall it’s just a matter of we don’t like him and we don’t want him. That’s a personal preference.”

Sir Paul has been linked to the Telegraph and Spectator securities since their respective parent companies were placed into insolvency proceedings by Lloyds Banking Group more than a year ago.

Major shareholder in the parent company of GB News, Sir Paul left the board earlier this year.

He recently changed the name from UnHerd Ventures to Old Queen Street Ventures to “allow the outlet to bid on multiple media titles without creating the impression that they will be published by UnHerd,” a source close to him said last month.

RedBird IMI paid £600 million to acquire a call option that was to be converted into ownership of the Telegraph and Spectator.

The participants in the process questioned whether the Abu DhabiThe secured vehicle will recoup this amount upon subsequent sale of the assets.

Several parties also continue to compete for the purchase of newspapers.

They include Lord Saatchi, the former advertising mogul; National World, a group of regional newspapers listed in London; Mediahuis, the Belgian media company.

Last month, Sky News revealed that Nadhim Zahawi, the former chancellor, was contacting billionaire backers for a bid for the Telegraph.

Zahawi played a key role last year as intermediary between the Barclay family and RedBird IMI, and his closeness to the Telegraph’s former owners was underlined in May when Sky News revealed he was joining Very Groupfamily-owned online retailer and financial services provider, as its chairman.

He was appointed to chair the newspaper group if RedBird IMI was allowed to convert its call option into ownership of the securities.

This announcement came three months after IMI participated – together with private equity firm Carlyle – in a £125 million financial support package for Very Group.

The Barclay family is not thought to be playing a direct role in Mr Zahawi’s talks with IMI over the Telegraph.

The Times recently revealed that the publisher of the Daily Mail withdrew from the auction due to the risk of a detailed competition inquiry.

Sir Paul was said to have secured financing from Ken Griffin, the American founder of hedge fund Citadel, for a bid for the Telegraph, although it was unclear whether Griffin would be involved in financing the purchase of The Spectator.

Earlier this year, Sky News revealed that the Raine Group, best known in Britain for its role in recent deals involving football clubs Manchester United and Chelsea, and Robey Warshaw were hired to advise on the next phase owned by the Telegraph.

A person close to the Telegraph said its trading prospects were robust, as was evident from its recently published reports.

RedBird IMI and a spokesman for Sir Paul declined to comment.