(Bloomberg) -- Lloyds Banking Group Plc has turned down the latest bid from the Barclay family to reclaim the Telegraph newspaper, as it looks to reassure potential bidders in an ongoing auction process.
The lender rejected a £1 billion ($1.2 billion) offer backed by a Middle East investor, according to a person familiar with the matter. The bank has told the family to either bid in the auction or return with a transparently funded offer for the full amount it owes.
Lloyds seized the Telegraph titles along with the Spectator magazine from the Barclay family in June to claw back debts, removing Barclay family members from their director positions and placing the businesses in receivership.
The Barclays — not related to the bank of the same name — bought the titles in 2004 for £665 million. The family did not immediately respond to a request for comment.
Goldman Sachs Group Inc. has been appointed by the receivers to run the sales process for the Telegraph Media Group Ltd. and the Spectator (1828) Ltd.
The politically influential titles have already attracted interest from media bidders. US billionaire and major Republican donor Ken Griffin and hedge fund manager Paul Marshall have discussed a potential bid for the Telegraph, people familiar with the matter said previously. News Corp. Chairman Rupert Murdoch bid for the Spectator as recently as two years ago, separate people have said.
Will Lewis, a former Telegraph journalist and a Prime Ministerial adviser, said in September that he'd lined up funding for a takeover of his ex-employer. Middle Eastern investors have held talks with Daily Mail & General Trust Plc about supporting potential offers from the rival news publisher.
The Financial Times reported the news earlier.
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