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Index to British press articles on the Fayeds' purchase of Harrods

The Guardian article reproduced below was the first to suggest that Mohamed 'Al' Fayeds' purchase of House of Fraser shares had a 'Far East' connection.  Also given an airing for the first time is the involvement of Dr Ashraf Marwan — the Egyptian wheeler-dealer, House of Fraser shareholder, and Rowland ally — who knew that the Fayed brothers did not buy the shares with their own cash, and who was disseminating information to that effect.

The second article, taken from The Daily Telegraph's City column, also airs the Fayeds' involvement with Dr Marwan, plus reveals for the first time that Fayed had been granted powers of attorney by none other than the massively wealthy Sultan of Brunei.  (It would transpire later that the Swiss businessman mentioned, Carl Hirschmann, was the proprietor of the Zurich-based aircraft suppliers and outfitters Jet Aviation.  Hirschmann had been engaged by the Sultan to outfit and supply a Boeing 747, but Fayed tore up his contract once granted the Sultan's power of attorney to deal in the matter.)

The Guardian
Saturday, 8 December 1984

A leading Arab newspaper yesterday fuelled the controversy surrounding the future of House of Fraser, the Harrods stores group, by publishing a report suggesting that the 29.9 per cent Fraser share stake bought by the Egyptian Al Fayed brothers is now in the Far East.
    The Cairo-based newspaper Al-Arab also reported that the deal whereby Al Fayed Investment Trust bought the 29.9 per cent Fraser stake from Lonrho for £138 million has led to a dispute between the Al-Fayed brothers and Dr Ashraf Marwan, an Egyptian financier.  Dr Marwan sold four million Fraser shares to Lonrho three weeks ago and is a friend of Mr Tiny Rowland, Lonrho's chief executive. 
    The newspaper said that a dispute between Dr Marwan and the Al-Fayed brothers, who are multi-millionaires and members of one of Egypt's oldest established families, is likely to lead to a court action in London. 
    Al-Arab inquired of both parties as to the truth of the dispute, the newspaper said.  "One party affirmed it while the other denied it and assured that friendship still stands."  The dispute occurred on Wednesday evening. 
    Last night it was not clear exactly why Dr Marwan was in dispute with the brothers.  The newspaper reported: "This dispute relates to the deal when Al-Fayed purchased 30 per cent of Harrods shares to be conveyed from Switzerland to the Far East."
    The long-running House of Fraser saga continued yesterday with confirmation by Lonrho that it had bought 3.75 million more shares in Fraser to take its total holding to 9.75 million shares (6.3 per cent). 
    Some of the shares are believed to have been bought by the Fraser foundation, the Scottish charitable trust run by Sir Hugh Fraser, the former chairman of House of Fraser.  Sir Hugh said that he had sold 1.6 million Fraser shares. 
    Lonrho would not comment yesterday on its additional Fraser share purchases, or why it was buying Fraser shares so soon after selling the 29.9 per cent Fraser stake to the Al-Fayed brothers.

The Daily Telegraph
Wednesday, 19 December 1984

CONTROVERSY looks about to envelop the 29.9 per cent shareholding in House of Fraser which was sold, much to City amazement, by Lonrho to the Egyptian Al-Fayed family in October [actually 2 November] after five years of Lonrho-Fraser confrontations. 
    A dispute involving Mohamed Al-Fayed and Swiss businessman Carl Hirschmann, who claims to be entitled to $50 million as a result of an agreement with Mr Al-Fayed, has resulted in Mr Hirschmann taking legal action against the intermediary in the deal, Dr Ashraf Marwan. 
    Dr Marwan confirmed last night that this was taking place and that he, in turn, would be suing Mr Al-Fayed and attempting to attach the Fraser stake as the only major asset he has in Britain. 
    Dr Marwan was himself formerly the holder of more than 5 pc of Fraser, which was bough last month by Lonrho.  The dispute is believed to centre on dealings involving the Sultan of Brunei, one of the wealthiest men in the world, and powers of attorney granted first to Mr Hirschmann and then to Mr Al-Fayed.  Mr Al-Fayed, who is currently abroad, is likely to defend the action.

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