Britain's Daily Mail & General Trust group walked away from the auction of the Telegraphnewspaper today as the price of US publisher Hollinger's prize asset moved out of reach.
The owner of the Daily Mailnewspaper was part of a consortium led by private equity group CVC Capital Partners that had been in talks with Hollinger's bankers, Lazard, for the sale of the Telegraph, the country's biggest-selling broadsheet.
"Those discussions have now terminated," Daily Mail & General Trust (DMGT) said.
Its withdrawal from the auction leaves the billionaire Barclay brothers and venture capital firm 3i with buyout shop Veronis Suhler Stevenson in the running for the unit - which comprises the Daily Telegraph, its sister Sunday publication and the Spectatorcurrent affairs magazine.
The Telegraph Group came up for sale after a bitter dispute erupted between Hollinger's board and its then chief executive, Mr Conrad Black, over disputed payments he received from the company.
Sources say the sale had been delayed due to another scandal at Hollinger as it emerged it had over-stated circulation figures at its Chicago Sun-Timesnewspaper.