London's Evening Standard sold to ex-KGB agent

By Georgina Prodhan

LONDON (Reuters) - Russian billionaire and ex-KGB agent Alexander Lebedev is buying a majority interest in London's struggling Evening Standard newspaper for a nominal sum, current owner Daily Mail & General Trust (DMGOa.L) said.

A new company, Evening Standard Ltd, will be set up to own the Evening Standard with DMGT retaining a minority stake of 24.9 percent, DMGT said in a statement on Wednesday.

Lebedev -- who owns stakes in Russian banks, energy companies and airline Aeroflot (AFLT.MM) as well as Russia's main opposition newspaper -- said last week he was interested in influential British newspapers.

The Evening Standard, first launched as the "Standard" in 1827, is the first such leading British title to pass into foreign hands as the industry is battered by a steep fall in advertising revenues driven by the wider economic downturn.

The afternoon and evening tabloid, which is aimed at commuters, has also been fighting off tough competition from an array of free newspapers handed out at London stations.

"We are strong supporters of a free and independent press and we greatly admire the Evening Standard as an iconic publication with its pedigree of fine journalism and commentary," Lebedev said in the statement.

Lebedev, whose KGB duties brought him to London as economics attache in the 1980s, will be chairman of Evening Standard Ltd, and the transaction is expected to close next month.

He has also expressed an interest in Britain's Independent newspaper (INME.L), which is moving into to DMGT's London offices to cut costs after axing 90 editorial jobs.