Lebedev gets more time to tie up deal for Independent

FORMER KGB agent Alexander Lebedev has been given more time to try to finalise a deal to buy the Independent newspaper and its Sunday stablemate.

Independent News & Media (INM) said a period of exclusivity, which had been due to expire yesterday, had now been extended to 26 February in order to "facilitate bringing these discussions to a successful conclusion".

It is thought issues such as pension costs and penalties for potentially ending the printing contract for the papers have delayed the sale discussions.

The Russian oligarch already owns the London Evening Standard – he bought the loss-making paper for a nominal fee in January of last year.

A deal that brought the Independent newspapers into the same fold as the Evening Standard would be a logistical fit, as the INM titles already share the same Kensington offices as the London paper.

There has been wide speculation over the past year about the future of the Independent and Independent on Sunday, as their Dublin-based parent has suffered losses amid an advertising slump. In December, the heavily indebted group completed a refinancing deal after a rights issue and achieved its 135 million divestment target after the sale of its South African advertising business.

Lebedev made his money in insurance and banking, and is known as a philanthropist and champion of independent media. Since buying the Evening Standard, he has moved the paper to free distribution.