The Barclay brothers have ended months of uncertainty about the future of the Daily and Sunday Telegraphby buying both newspaper titles in a multi-million pound deal.
Hollinger International last night announced it had accepted a £665 million offer from the Barclays instead of a rival bid from venture capital house 3i.
Sir David and Sir Frederick Barclay, who also own the Business, Scotland on Sundayand the Scotsman, had been seen as favourites to take control of the titles in a bidding war.
But a previous £260 million offer for the Telegraph titles' ultimate owner, Hollinger Inc, agreed by ousted chief executive Lord Black of Crossharbour, was blocked by the company's board.
Among interested bidders in the Telegraph titles, which also includes the Spectator, were Express newspapers owner Mr Richard Desmond and newspaper group Daily Mail & General Trust.
Hollinger International, which also publishes the Chicago-Sun Timesand the Jerusalem Post, announced it was first considering selling the company in November of last year when it was revealed that Lord Black was stepping down as its chief executive.
The announcement followed an internal inquiry into payments to executives, including Lord Black, who denies any wrongdoing.
He is the main subject of a $1.25 billion lawsuit from Hollinger International, which claims he used the newspaper as "a cow to be milked" of cash.
The Daily Telegraphreported today that Lord Black may use his 72 per cent voting stake in Hollinger International to attempt to block the latest Barclays offer. He made no immediate comment.
Hollinger believes it does not need the permission of a majority shareholder to push the deal through, although this may be contested in the US courts.
PA