Firm embroiled in libel battle with FT wants to buy the newspaper

by Staff, Brand Republic 18-Apr-05, 11:00

LONDON - The chief executive of the stockbroking firm involved in a legal battle with the Financial Times is reportedly interested in making a bid for the newspaper.

Terry Smith, chief executive of Collins Stewart Tullet, is keen to pursue a buyout and IPO of the Financial Times, according to a report in the Sunday Times this weekend.

He told the newspaper: "We would like to be able to organise a buyout of the FT."

Collins Stewart Tullet is involved in an ongoing court case with the FT over claims that it was libelled by the newspaper. The case is expected to be heard in November.

This has led to a report on Reuters that Smith's claim he is interested in acquiring the broadsheet is "a lot of heat and noise, drummed up by someone who is not an independent third party and the British press".

The takeover news comes after Pearson, owner of the Financial Times, was told by its second largest shareholder, Franklin Templeton, that it should consider selling the newspaper unless it starts to generate tens of millions of pounds in profits.

The newspaper made a loss of £9m last year and there has previously been speculation that the FT could be sold, with Rupert Murdoch named as one possible buyer. However, the most recent circulation figures published by the Audit Bureau of Circulations on Friday showed that it was sold 433,858 copies a day in March, a rise of 3.45%.

Last week, Pearson revealed it was launching a free afternoon briefing, which will comprise two A4 pages of content and advertising, distributed at City offices and available online.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.