Newsquest, Hollinger to pursue `Belfast Telegraph'

Newsquest, the regional newspaper group and Hollinger International of Canada are set to join the race to buy the Belfast Telegraph, which Trinity, the regional publisher, will be forced to sell if it takes over Mirror Group.

Trinity was told by the British government it would only be granted permission to merge with Mirror Group if it sold the title and three other publications in the North. There has already been significant interest in the disposal. Some suitors say the price could reach £225 million sterling (€341 million).

Newsquest, the group which Gannett, owner of USA Today, agreed to buy in June, is a keen bidder. Hollinger, headed by Mr Conrad Black, is also expressing an interest.

Mr Black, who also owns the Telegraph group, previously tried to purchase the Irish Press Group with a consortium including the Sunday Business Post but lost out to Dr Tony O'Reilly's Independent News & Media. The Sunday Business Post is currently printed at the Belfast Telegraph's plant.

Trinity last week announced a merger with Mirror, which valued the tabloid publisher at £1.2 billion. It said at the time it was confident of securing a good price for the Belfast Telegraph, one of its flagship titles. The group has had half a dozen expressions of interest.

Other bidders are likely to include: Northcliffe Newspapers, a subsidiary of Daily Mail & General Trust; Independent News & Media; and the Belfast Telegraph management. Regional Independent Media, the publisher that earlier this year bid for Mirror, may also consider a bid.

Neither Newsquest nor Hollinger was available for comment last night.

Newsquest has a good chance of leading the race for the titles, as it would be unlikely to face regulatory hurdles if it acquired the Belfast Telegraph.

By contrast, Independent News & Media is already dominant in the region and may be blocked by the competition authorities. Some other contenders may face similar problems.

Trinity was told to sell the Belfast Telegraph by Mr Stephen Byers, Secretary of State for Trade and Industry.