Russian oligarch in talks to buy more British newspaper titles

Dec 18, 2009, 15:48 GMT

London - Russian oligarch Alexander Lebedev is in 'exclusive talks' to buy Britain's liberal Independent newspaper and its sister title, the Sunday Independent, publishers Independent News & Media (INM) said Friday.

Lebedev, who earlier this year bought London's Evening Standard newspaper for a nominal fee, had struck an exclusive - but non-binding - agreement with INM to hold discussions over the potential sale of the national newspapers.

Media sources said the talks had been given fresh momentum following the completion of debt restructuring at INM and the settlement of a boardroom battle between major shareholders.

It was reported in June that London-based Lebedev, an ex-agent of the former Soviet KGB, had table a 'nominal offer' for the two loss-making titles for which he was expected to pay up to 20 million pounds (32 million dollars).

Lebedev bought a 75.1 per-cent stake in the Evening Standard from its owners Daily Mail & General Trust in January for a nominal fee. The paper dropped its cover price in early October and is now distributed free of charge.

Shares in Dublin-listed INM raced 7 per cent higher Friday, but the group stressed that talks were still at an early stage, with the exclusivity agreement running until February 15.

'There is no certainty that these discussions will lead to the finalisation of a transaction of any kind,' said the INM statement.

Sources said that INM's recent debt restructuring had paved the way for sale talks to restart. The two titles are believed to have lost 13 million pounds last year.

The future of the Independent and its Sunday counterpart has been the subject of speculation for the past year following severe losses due to a slump in advertising.

INM reported a pre-tax loss of 143.5 million pounds last year, a deterioration of 165 per cent compared with 2007.

Around 90 jobs have been cut at INM's national newspapers as part of the cost-cutting plans.

Lebedev became the first Russian oligarch to own a British newspaper title when he bought the Evening Standard.

He made his fortune mostly through stakes in banking and insurance companies and the Russian airline Aeroflot, and founded the news magazine Korrespondent.

He is also the major shareholder, alongside former Soviet leader Mikhail Gorbachev, in the independent Russian newspaper Novaya Gazeta.