Newspaper giant Hollinger International said yesterday it will pursue a sale of its London Daily Telegraph rather than sell the entire company.
Lazard, the company’s bankers, likely will complete a deal within the next 10 days, sources said.
The decision, announced after a board meeting in New York, was widely expected.
The Telegraph is likely to go for about $1.3 billion, leaving Hollinger International with about $1.075 billion after paying taxes, according to a source close to the company. Months ago, many observers predicted the paper would be sold for about $900 million.
Hollinger had four offers on the table yesterday, a source said, but it tossed out a bid from Daily Mail & General Trust due to regulatory concerns.
The remaining three bidders are Sir David and Sir Frederick Barclay of the U.K.; venture capital group 3i Group Plc; and a joint bid from buyout firms Apax and Candover Investments.
The Telegraph was put on the block following the ouster of CEO Conrad Black and his top deputy last November, after the Hollinger board found the two executives took some $32 million in allegedly improper payments.
Black remains the controlling shareholder.