DAILY MAIL & GENERAL TRUST (DMGT).

Investors Chronicle, June, 2004

Assuming that its offer trumps that of the Barclay brothers, Daily Mail & General Trust (DMGT) could soon become the proud owner of the Daily Telegraph and Sunday Telegraph newspapers. There is some logic to the company owning both a right wing tabloid and a pair of right-leaning broadsheets. And the Telegraph would possibly feel at home within the DMGT's organisation, whose undemocratic shareholder structure is not unlike the structure under the Telegraph's current owner, Hollinger.

But investors are understandably sceptical about whether any deal will make financial good sense. The mooted price tag of GBP650m looks so steep as to make earning a decent return very difficult. It may be better for the company's shareholders, then, if the rival bidder is...

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