The Daily Observer London Desk: Reporter- Sarah Marshal
Lloyds Banking Group is said to have appointed consulting firm AlixPartners to act as the official receiver to seize the shares owned by the Barclay family in holding company Telegraph Media Group (TMG) which also controls the Spectator magazine.
“Multiple sources” at the bank told the Guardian that it decided to act after “becoming frustrated at the repayment of a loan amounting to hundreds of millions of pounds”.
Lloyds also intends to remove Barclay family-appointed board members, according to the publication.
The revelations emerged just hours after it was reported that the publication was on the “verge” of going into administration because of its debts. The Barclay family later said the loans “do not, in any way, affect the operations or financial stability of” the firm.
If the latest claims are true, it would see the removal of the newspaper group’s chair Aidan Barclay and his brother Howard, who between them control the family’s UK assets.
Lloyds has reportedly appointed the firm Lazard to advise on its options and is eyeing the appointment of one other investment bank as advisers and now wants to move swiftly to set up an auction.
Twin brothers David and Frederick bought TMG in 2004 for £665m.
Tensions erupted between them in 2019 when Frederick t mooted a sale as part of a feud with his late brother David.
Potential suitors weighed in with bids of about £200m.
However, since then its financial position has dramatically improved after its subscription model attracted more than 750,000 sign-ups – leading to reported profits of almost £30m last year.
Potential suitors include the owners of the Daily Mail, Belgian group Mediahuis and Amazon founderJeff Bezos who bought the Washington Post in 2013.
