Russian billionaire Alexander Lebedev is buying a majority interest in London's Evening Standard newspaper for a nominal sum, current owner Daily Mail & General Trust said today.
Mr Lebedev - who owns stakes in Russian banks, insurers and airline Aeroflot as well as the country's main opposition newspaper - said last week he was interested in influential British newspapers, in crisis as advertising revenues plummet.
A new company, Evening Standard Ltd, will be set up to own the Evening Standardwith DMGT retaining a minority stake of 24.9 per cent, DMGT said today.
As well as cuts in advertising spending driven by the economic downturn, the Evening Standard- an afternoon and evening tabloid aimed at commuters - has been battered by competition from free newspapers distributed at London stations.
Mr Lebedev, a former KGB agent posted to London in the 1980s, will be chairman of Evening Standard Ltd, and the transaction is expected to close next month.
Reuters
