Efune closing in on deal to buy Telegraph

The owner of the American conservative newspaper The New York Sun is closing in on a deal to buy the Telegraph for more than £550 million.
Dovid Efune, who is also the honorary chairman of the Algemeiner Journal, a US-based newspaper that covers American and international Jewish and Israel-related news, is set to enter exclusive talks with the Telegraph’s proprietors.
Discussions between Efune and RedBird IMI were in advanced stages at the weekend, according to the Financial Times, which first reported the news, with Efune offering more money than other bidders such as Sir Paul Marshall, the hedge fund boss.
Last month Marshall bought The Spectator magazine for £100 million, meaning that RedBird IMI, which acquired the right to own the Telegraph and its sister magazine for £600 million last year, could recoup all of its initial investment.
Along with Efune, several other individuals were understood to have sought to bid for the Telegraph, including David Montgomery’s listed publisher National World and Nadhim Zahawi, the former Conservative chancellor.
Efune, 39, entered the race after securing financial backing from Oaktree and Hudson Bay Capital, the investment firms, as well as the family office of Michael Leffell, a hedge fund manager.
He was born in Manchester and while he has built his media career in the US, his grandfather, the late Peter Kalms, was finance director and deputy chairman of Dixons, the electricals retailer founded by the Kalms family.
Sir Stanley Kalms, a cousin of Efune’s grandfather, was the long-serving chairman of Dixons and also treasurer of the Conservative Party from 2001-03.
The Barclay family lost control of the Telegraph and Spectator last summer over unpaid debts to Lloyds Banking Group. RedBird IMI emerged as the successful bidder soon after, when the group made an offer of £600 million for the debt behind the two media properties.
However, its ability to convert the debt into full ownership was blocked by the UK government over concerns about the proposed ownership by Redbird IMI, given the group is backed by a ruler of the United Arab Emirates.
By issuing a public interest intervention notice, the government blocked the investment firm from converting the debt into equity. The bid was also subject to regulatory investigations by Ofcom, the media regulator, and the Competition and Markets Authority. The government then introduced legislation to block foreign governments or their affiliates from owning British newspapers or news magazines.
Robey Warshaw and the Raine Group are advising RedBird IMI on the deal.
Redbird IMI declined to comment. Efune could not be reached for comment.