The owner of the politically right-leaning New York Sun has emerged as the favourite to acquire the Daily and Sunday Telegraph ahead of Friday’s deadline for bids.
Though a late entrant to the auction British-born Dovid Efune’s bid is considered by several parties as the potential new frontrunner.
He is thought able to offer a competitive bid of around £550m while not attracting the political and regulatory objections that saw a bid backed by the United Arab Emirates ruling family blocked by the government.
Mr Efune is one of only two bidders to have attended senior management presentations at the Telegraph.
They have broadly welcomed the prospect of his ownership while conceding that “none of the bidders are perfect”.
If the bid is successful it could provide a link between the Telegraph and its former owner Conrad Black.
Lord Black, who is a regular contributor to the New York Sun, was convicted of fraud and obstructing justice in 2007 and jailed for more than three years, but was pardoned in 2019 by Donald Trump when he was US President.
There are several other bidders who remain in the hunt for one of Britain’s most influential and profitable daily newspapers and its Sunday sister publication.
Hedge fund tycoon Sir Paul Marshall recently acquired the Spectator for £100m and appointed former Conservative minister Michael Gove as the new editor.
Backed by funds from fellow hedge fund boss Ken Griffin, some have speculated that Sir Paul wants to add to a growing right-leaning media empire that includes GB News.
However, sources close to the deal suggest that the bid may be losing momentum.
National World, which owns regional titles including the Scotsman and the Yorkshire Post, is also in the running and its owner, David Montgomery, was the other bidder to attend a presentation by the current Telegraph management.
Attendees were reportedly underwhelmed by his plans for the group.
One attendee described his ideas for the Telegraph’s future as “dated” and “a bit like dad dancing – he doesn’t understand modern media”.
Lord Rothermere, the controlling shareholder of the Daily Mail, is thought to have refreshed interest in the auction having previously walked away citing inevitable competition objections from regulators and a new Labour government.
Former chancellor Nadhim Zahawi, who is close to the Telegraph’s former owners, the Barclay family, is also thought to be trying to raise money in the Middle East to finance a bid.
Rupert Murdoch’s News UK had shown early interest but is no longer considered a bidder, having been more interested in the Spectator.
Sources close to the deal say there are other potential bidders who may emerge as Friday’s midnight deadline approaches.
The Telegraph is back up for sale after an audacious attempt backed by Redbird IMI – a vehicle largely funded by Manchester City owner Sheikh Mansour – to take ownership of both the Telegraph and the Spectator by paying off the previous owner’s debts collapsed.
The bid was vetoed by the previous Conservative government, who balked at the idea of a foreign state having majority ownership of politically influential UK newspapers and periodicals.
Titles like the Telegraph and the Spectator don’t come up for sale very often and are considered “trophy assets”.
Assets like this have prestige and influence, which means they command a higher price than their financial performance alone can justify.
Ian Whitaker, media analyst and founder of Liberty Sky Advisors, told the BBC’s Today programme that the strength of the brand was key in deals like these.
“What a number of backers have found is [if] you can have a strong established brand, then not only can you take it from domestic markets and sell overseas and potentially globally but also as well you can monetise other areas as well,” he said.
“The Telegraph, for example, it sells travel and wine and so forth.”
Redbird IMI effectively paid £600m for the Telegraph and Spectator titles, with many thinking they had overpaid.
However, Sir Paul Marshall paid £100m for the Spectator alone despite the fact it only makes around £2m in profit a year.
That valuation has fuelled optimism at Redbird IMI that the Telegraph, which makes a profit of over £40m, will fetch “north of £500m”.
If so, the Gulf bidders will be able to walk away from their attempted swoop without damage to their wallets or dignity.
It is expected to take several weeks or even months for the ownership to be settled as various legal and regulatory hurdles are cleared.