The Barclay brothers have added the Daily Telegraphto their portfolio of British newspapers after agreeing a £260 million sterling takeover of Hollinger.
They announced the signing of an "irrevocable agreement" with Ravelston, owned by Mr Conrad Black, to buy its 78 per cent stake in the Canadian company.
The deal was agreed in New York with ownership of Hollinger transferring to Press Holdings International (PHI) - owned by Sir David and Sir Frederick Barclay.
It also gives them 73 per cent of voting rights in Hollinger International, which owns the Telegraph Group in Britain, the Chicago Sun-Timesand the Jerusalem Post.
PHI has sent a letter to the directors of Hollinger International outlining reasons for the takeover, which include an improved ability to renegotiate debt. Substantial cost savings would be achieved in distribution, printing, and advertising across the newspaper titles of the enlarged group.
The company also cites negative publicity surrounding a US investigation into payments to Hollinger International executives, including Mr Black. who denies any wrongdoing.
The Barclay brothers own a number of newspapers in Britain including the Scotsman, Edinburgh Evening News, and Scotland on Sunday. They also own the Ritz hotel in London and the Littlewoods and the Index Catalogue stores.
Hollinger International has removed Mr Black as its chairman. It follows the announcement of a legal action claiming he and an associate improperly took more than £125 million sterling from the company.
Hollinger said the executive committee of its board of directors had removed the former Daily Telegraphboss as chairman, with immediate effect. He remains the company's controlling shareholder.