Barclays in frame for Express

EXPRESS Newspapers may yet fall into the hands of reclusive multi- millionaries and Scotsman newspaper owners the Barclay brothers after industry sources said parent company United News and Media was considering withdrawing the company's east London printing facility from the package.

Negotiations between Lord Hollick's UNM and the Barclay's Press Holdings foundered in May over the question of a price for the newspaper titles, which include the Express, the Sunday Express and the Daily Star.

"By removing the printing facility, the two sides will be able to renegotiate on price," an industry source said. UNM is believed to be looking for around #350m for the titles, but the Barclay twins offered only #200m.

Negotiations over the sale of the Express, which appears to have finally stabilised its flagging circulation at around one million, are complicated by Labour peer Hollick's reluctance to let the titles go.

"Yes, we know they are non-strategic assets - but never underestimate that attraction of owning a national newspaper to a Labour peer," said one institutional investor. "The readership databases could also prove useful when the group expands its internet business."

All three Express titles have suffered severe cuts in funding, including #5,000 knocked-off the weekly news-desk budget, and there is a feeling UNM is not prepared to make significant investment.

Andrew Neil, who replaced Bert Hardy as boss of Press Holdings, is widely known to be in favour of building a media empire through acquisition. Insiders suggest if a deal was completed, Sunday Business editor Jeff Randall would replace Express editor Rosie Boycott.

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