THE Barclay family has put forward a £1 billion offer for The Telegraph to Lloyds Banking Group plc (LSE:LLOY) in the hope of regaining control of the publisher ahead of a looming auction. The family, which owned Telegraph Media Group Limited (TMG) for almost two decades, is understood to have secured financing from Abu Dhabi investors in a development first reported by Sky News. Members of the Abu Dhabi ruling family are reported to be involved in discussions, including the Manchester City Football Club majority shareholder Sheikh Mansour bin Zayed Al Nahyan.

Lloyds Banking Group declined to comment. The offer is the latest attempt by the Barclays to regain control of The Telegraph, which was placed into receivership by Lloyds Bank following a dispute over unpaid debts. It comes only weeks after a proposal for £725 million was submitted.

Lloyds currently owns The Telegraph but has no involvement in editorial matters. The latest bid comes ahead of the start of a planned auction for the group, which is expected to begin as soon as this week. Several bidders have already expressed an interest, including hedge fund manager and GB News owner Paul Marshall, who has lined up backing from American billionaire Ken Griffin.

The Daily Mail has also expressed an interest and is said to have held discussions with investors in the Middle East about a possible bid. Others to have publicly said they are keen to bid include National World Plc (LSE:NWOR), a local newspaper and news website publisher founded by a former editor of the News of the World, and German media giant Axel Springer SE, which owns newspapers Bild and Die Welt. Axel Springer previously lost out to the Barclays in a bidding war for The Telegraph in 2004.

William Lewis, a former editor of The Telegraph, has said he had also lined up funding for a potential takeover. Any deal would have to be cleared by media and competition regulators.