Politico owner Axel Springer joins rival Telegraph bid led by Dovid Efune

Sale to Lord Rothermere, Daily Mail owner, referred to regulators on media plurality and competition grounds

Media company Axel Springer, the owner of Politico and Business Insider, has joined a rival bid for the Telegraph, as a proposed £500m sale to the owner of the Daily Mail enters months of scrutiny from regulators.

Axel Springer, which also owns Europe’s largest-circulation newspaper, Bild, has joined a consortium headed by Dovid Efune, the British owner of the New York Sun who has been pursuing the Telegraph titles for well over a year.

It is the latest twist in the saga of the Telegraph’s ownership, which has already dragged on for three years.

An agreed sale to Lord Rothermere, the owner of DMGT, which owns the Daily Mail, has been referred to regulators on media plurality and competition grounds.

Lisa Nandy, the culture secretary, had expressed concern about the consolidation of “right-leaning” titles and the risks that the deal could lead to the Mail and Telegraph taking the same stance on issues.

While DMGT disputed the value of labelling media titles as “rightwing”, arguing the term was vague, Ofcom will now look at the deal’s impact on media plurality.

The addition of Axel Springer is a major boost to the credibility of Efune’s consortium, though the sale to DMGT would now have to be derailed for his bid to make progress.

“We can confirm that we have submitted a superior offer letter to the seller of the Telegraph Media Group,” the consortium led by Efune said in a statement.

“The offer includes a larger upfront cash payment, a minimal debt portion and no anticipated regulatory hurdles, including as it relates to all the requirements on competition, public interest and foreign government influence. Our offer has backing amounting to the full required capital to consummate a transaction.

“We believe our proposal is in the best interests of the seller, the Telegraph, its staff, readers and the wider British public. Our commitment to securing the best possible outcome for all parties in this long and winding saga has never wavered.”

Baltimore Sun owner David D Smith and British investor Jeremy Hosking, who has previously donated to the Reclaim and Conservative parties, as well as the campaign for Brexit, are already involved.

Sources close to Rothermere are adamant that there are no issues around financing the £500m deal, though Telegraph figures remain nervous about the agreement’s completion.

This week, RedBird IMI, the UAE-backed venture which is trying to offload the titles after being forced to sell them by a change in the law around state ownership, was released from the legal restrictions preventing an onward sale.

DMGT declined to comment.