Bidders for The Daily Telegraph and its Sunday sister title are this week holding their first direct talks with the newspaper group’s bosses ahead of a deadline for formal bids later this month.
Sky News has learnt that the remaining bidders for the right-leaning newspapers are participating in management presentations as they seek to finalise second-round offers.
Sources close to the process said on Tuesday that several parties were scheduled to meet Telegraph executives including CEO Anna Jones and the Daily Telegraph editor, Chris Evans.
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They are understood to include Sir Paul Marshall and National World, the London-listed media group run by newspaper veteran David Montgomery.
At least one other party whose identity has yet to be disclosed publicly is also thought to remain in contention to buy the newspapers.
A separate bid orchestrated by Nadhim Zahawi, the former chancellor, is the subject of bilateral discussions with IMI, the Abu Dhabi-based venture which wanted to take a controlling stake in the British media assets before being blocked by the government.
Sky News revealed exclusively last month that Sir Paul was the frontrunner to buy The Spectator, which along with the Telegraph titles was owned by the Barclay family until their respective holding companies were forced into liquidation last year.
A deal for The Spectator is expected to be signed later this week or early next, with one source saying that Sir Paul’s Old Queen Street Ventures vehicle would pay just under £100m to acquire the current affairs magazine.
RedBird IMI, a joint venture between IMI and the American investor RedBird, paid £600m last year to acquire a call option that was intended to convert into equity ownership.
A sale of The Spectator for just under £100m would leave it needing to sell the Telegraph titles for £500m to recoup that outlay in full – or more than that once RedBird IMI’s fees and costs associated with the process are taken into account.
Of the unsuccessful bidders for the Telegraph, Lord Saatchi, the former advertising mogul, offered £350m, while Mediahuis, the Belgian publisher, also failed to make it through to the next round of the auction.
Lord Rothermere, the Daily Mail proprietor, pulled out of the bidding earlier in the summer amid concerns that he would be blocked on competition grounds.
Last month, Sky News revealed that Mr Zahawi had sounded out Boris Johnson, the former prime minister, about an executive role with The Daily Telegraph if he succeeded in buying the newspapers.
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Ex-chancellor plots Telegraph bid
Mr Johnson, who now writes a column for The Daily Mail, previously worked for the Telegraph, both as a correspondent in Brussels and more recently as a highly paid columnist.
The fate of the Telegraph, historically a staunch Conservative Party backer, has now been up in the air for more than a year.
Lloyds Banking Group, the UK’s biggest high street lender, seized control of its parent companies after the Barclay family fell behind on debt repayments.
The Barclays continue to control Very Group, the online retailer, with IMI also having extended financing to that business.
Mr Zahawi was recently appointed as chair of Very Group.
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IMI is controlled by the UAE’s deputy prime minister and ultimate owner of Manchester City Football Club, Sheikh Mansour bin Zayed Al Nahyan.
The Lloyds debt, which totalled more than £1.15bn, was repaid by RedBird IMI on behalf of the family.
RedBird IMI’s attempt to take ownership of the Telegraph titles and The Spectator was thwarted by the last Conservative government’s decision to change media law to prevent foreign states exerting influence over national newspapers.
A spokesman for RedBird IMI declined to comment.