New York Solar owner Dovid Efune has entered exclusive talks to buy the Everyday and Sunday Telegraph for around £550m.
Efune, former editor of the New York-based Jewish publication Algemeiner Journal, made the highest bid to buy the newspapers last month.
It is understood that the exclusivity talks will trigger a six-week due diligence process to ensure it is suitable to acquire the titles.
The deal will be subject to scrutiny by media regulator Ofcom. It will consider public interest laws, including the need for accurate presentation of news, the free expression of opinions and, specifically for newspapers, a sufficient plurality of opinions and people with ownership management. The final approval will fall to the secretary of culture, Lisa Nandy.
Efune, 39, has a number of financial backers, including asset managers Oaktree and US hedge fund manager Michael Leffell's home office. Efune had sought backing from investment management firm Hudson Bay Capital, but it rejected the opportunity.
Efune said: “The Every day Telegraph and the Sunday Telegraph symbolize the best of world-class independent journalism and a commitment to tirelessly pursue the public interest. This unique institution has a history as a pillar of the British press, dedicated to providing readers with clear, uninhibited coverage of the biggest issues of the day.
“As a lifelong journalist – variously as a reporter, columnist, editor and now publisher – I firmly believe that these values, in general, are fundamental to the advancement of any journalistic enterprise. It is with these principles that Telegraph is best positioned for even greater success in the future.”
Efune's comments on the conflict in the Middle East, particularly the war between Israel and Gaza, have raised concerns about impartiality among staff. He had previously said: “Facts: there is no famine in Gaza. There is no genocide in Gaza. More than 30,000 civilians have not died. “Israel does not attack innocent people.”
After Israel launched a major military offensive against Hamas forces in Rafah earlier this year, he stated: “Extinguishing 80% of a fire helps no one. Israel needs to finish the job in Rafah. “All the innocent people in the region will be better off because of it.”
The views of Efune, who was born in Manchester and spent his career in the media in the United States, have caused concern throughout the Telegraph's editorial staff.
Telegraph staff had criticized the potential editorial ramifications of being taken over by a consortium led by GB Information co-owner Sir Paul Marshall, who did not submit a second round bid for the titles, and are now alarmed by the political leaning of the new leader.
“There is current concern in the ranks about what Efune will do with our editorial stance on the Middle East,” said an editorial source. “We are already pro-Israel, but people are worried that he will turn the Telegraph into his private propaganda sheet. What does his strong and vocal support for the Israeli right mean for the safety of Telegraph reporters in the Middle East?
RedBird IMI, a consortium backed by Sheikh Mansour bin Zayed Al Nahyan, vice president of the United Arab Emirates and owner of the Manchester Metropolis football club, and the American investment firm RedBird Capital Companions, has been forced to sell the Spectator and Telegraph titles . after the British government published legislation to prevent foreign states or associated persons from owning journalistic assets in the United Kingdom.
Last month, Marshall agreed a £100m deal to buy the Spectator, and soon after former Conservative minister Michael Gove was appointed its new editor.