OFT decides not to investigate potential purchase of Independent titles by London Evening Standard proprietor
Mark Sweney
Alexander Lebedev has moved a step closer to taking control of the Independent newspapers after the Office of Fair Trading said it would not investigate the deal over competition issues.
It is understood that Lebedev, who also owns 75% of the London Evening Standard, has been locked in discussions over issues including Independent News & Media's £35m printing contract and a deal around office space that the two companies share in Kensington.
Last month INM and Lebedev lodged a submission with the Office of Fair Trading that began the process of checking whether any competition issues might stand in the way of a deal. The OFT called for comments by 11 March and has until 26 April to issue a ruling.
However the OFT has announced today that the Lebedev takeover of the Independent has not been found to qualify for a competition investigation, effectively giving the green light on competition grounds.
To qualify for the OFT to launch an investigation the merged company's UK turnover must be £70m or hold more than a 25% share of supply in the UK. The proposed Lebedev/INM deal did not reach either threshold.
According to city sources, senior executives at INM are desperate to be able to announce the sale of the Independent and Independent on Sunday to shareholders when it reports financial results for 2009 next Wednesday.
Part of the deal with bondholders-turned-shareholders, who own 46% of INM after agreeing a rescue package to repay €200m (£173m) debt last year, is to secure a deal to offload the loss-making papers as soon as is practically possible.
Lebedev and his advisors have been on the hunt for an editor, afterdropping former Radio 4 Today editor Rod Liddle who was first choice, with former BBC director general Greg Dyke and Newsnight presenter Jeremy Paxman suggested as candidates.
It is understood that the Lebedev camp is keen to have an editor in place in time to stamp a mark on media coverage related to the general election, which is widely expected to be held in May.
It is also thought that any plans to take the Independent free, at least in London, have been put on the back burner. It is understood that there is a desire to see if the daily title can be brought to profitability by maintaining the existing model – a price cut is thought to be one option after takeover. If the current business plan failed to turn around the titles, more radical models would be implemented.
The Guardian
