Telegraph hopefuls take to phones

CRISIS-HIT Hollinger has been inundated with approaches for its newspapers within 24 hours of admitting it may break up the group. The Daily Telegraph is attracting most interest, but the Chicago Sun-Times is also seen as a prize.

One source said: 'The telephones have been burning red hot - there are dozens of people after the Telegraph.'

Investors are still reeling from the disclosure that owner Lord (Conrad) Black and other senior directors accepted £19m in unauthorised payments. Black, who will resign as Hollinger chief executive on Friday, scorned reports that his career is over.

Speaking in Canada, Black said: 'I'm still the chairman, I'm still the controlling shareholder. And I made 50 million bucks yesterday.' Hollinger shares rose sharply on Monday, but fell back last night.

Possible bidders for the Telegraph include Richard Desmond, owner of the Daily Express. Former Daily Telegraph managing director Stephen Grabiner may bid with Apax Partners.

Other private equity firms have logged an interest - some think outgoing Carlton boss Michael Green will join in. The Daily Mail & General Trust is seen as a contender.

Investment bank Lazard is advising Hollinger on its finances and any asset sales.

The US Securities and Exchange Commission refused to comment on whether it may take action against Hollinger and its directors.