The publishing industry has been hit by speculation of a take-over of Finance Week. Mungo Soggot and Peta Thornycroft report
The managing director of Times Media Limited (TML), Roy Paulson, this week confirmed he had confronted the editor of the Financial Mail (FM) and TML director, Nigel Bruce, over rumours about an extraordinary scheme to take over rival magazine Finance Week.
Bruce denies any involvement. The rumours reached fever pitch in the money-magazine industry this week of a secret deal, allegedly involving controversial publishing entepreneur Stephen Mulholland, to supplant the Financial Mail as market leader.
The deal, if it were on the cards, could have implications for the biggest black empowerment project to date — the take-over of Johnnic assets by Cyril Ramaphosa’s NEC consortium.
But all the players allegedly involved — including the FM’s “editor-at-large”, David Gleason, who is alleged to be the key player in the scheme — have insisted there is no substance to the rumours. Bruce this week threatened the Mail & Guardian with a court interdict if it published the allegations.
It has been alleged that Gleason, a freelancer who is entitled to pursue his own business interests, and two other businessmen planned to buy the magazine in a deal involving Afrikaans press giant Nasionale Pers. It was suggested that Bruce and Mulholland would enter at a later stage.
The rumours follow much speculation in financial media circles that Bruce is wary of working under the Nail/NEC consortium. Bruce said he suspected the rumours had been started by Nail executives keen to “intimidate” him. He was certain other businessmen were eyeing Finance Week, but neither he nor Gleason had been contacted. Bruce said businessmen who were anxious about the fate of the FM under the new owners frequently approached him with plans to buy it out.
Paulson told the Mail & Guardian both Bruce and Gleason had assured him there was nothing behind the rumours. Paulson said similar speculation had been circulating for about 18 months, but conceded that the latest batch was the most detailed to date. He said he had also approached Mulholland who had also flatly denied any involvment.
Paulson said Bruce had considered an interdict because of a photographer’s intrusive behaviour, but not to discourage any investigations. “Nigel is too much of a journalist to do that.” Paulson rejected the idea that Gleason wanted to edit a magazine of his own. “(Gleason) is not the editing type.”
It is understood the proposed deal was to buy the
magazine for R4,5m and split the equity between the TML troika, two businessmen steering the deal, Nasionale Pers and the incoming staff of Finance Week. The two businessmen apparently involved were Andy Schwartz, the former MD of now defunct Cape Investment Bank, and stockbroker Ed Hern. Both work from the same Johannesburg office.
Speculation is the deal would involve Nasionale Pers effectively shutting down F&T Weekly — the fledgling and as yet unprofitable English translation of Finansies and Tegniek — by incorporating the name into Finance Week.
A media analyst said the contact network of the TML troika, champions of a Thatcherite economic view, could command considerable corporate support.
Despite the wave of denials there are some inconsistencies in the responses of the men involved. Naspers magazine head Salie de Swardt confirmed to the Mail & Guardian he had spoken to Gleason, but would not say what they had discussed. He refused to deny he had discussed Finance Week with Gleason “because I prefer not to … but nothing is going on.” Asked to confirm his contact with de Swardt, Gleason — who denied any involvment in any bid to buy Finance Week — told the M&G he had “never met the man”.
Hern told the M&G he had met lawyers representing Finance Week, but would not say who he was representing. And Finance Week editor Stuart Murray said Hern had met Oshy Tugendhaft, a director of the magazine and a senior partner at attorneys Moss Morris. Tugendhaft represents controlling shareholder Lynne Hill, wife of Oliver Hill who is currently emprisoned in Britain pending application for his extradition to South Africa to face fraud charges.
Murray denied any contemporary moves for the purchase of the magazine were in process. He said there had been many inquiries, but if the magazine is sold he has a legal first shot at buying it.
At the time of going to press, it is understood the alleged deal was called off . One player speculated premature leaks persuaded the bidders to pull out for the moment.