According to the AFR it is believed that printing company Caxton Web where Selig is the director, has a view to expand Blue Star’s digital business and shut down its more traditional and struggling sheetfed printing division.

It is understood there are a number of potential buyers still in the mix for Blue Star, with Caxton Web one of the front-runners.

Blue Star was put up for sale in June and Global investment bank Goldman Sachs was hired by Champ Private Equity, the majority owner of Blue Star Group two months ago to oversee the sale of the Trans-Tasman print and communications giant.

TMA Group is believed to be one party to walk away from negotiations. TMA is the group which put its hand up to buy the country’s biggest printing business PMP earlier this year.

Selig is a former head of Blue Star’s Australian operations and former Blue Star shareholder. He left the trans-Tasman printing business when Champ acquired it for $NZ385m in December 2006.

Blue Star’s ambitious 26.5 per cent growth target for a $53.6m earnings figure this year has already failed. Blue Star’s figures in July reported an operating loss of $15.6m for the first half of this year, $9.3m more than the previous corresponding period last year. Sales revenue for the six months was $280.3m, some $13m less than 2010’s result for the same period.

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