THE millionaire Barclay brothers have ended months of uncertainty about the future of the Daily and Sunday Telegraph by buying both newspaper titles.

Hollinger International accepted a £665m offer from the Barclays instead of a rival bid from venture capital house 3i.

Sir David and Sir Frederick Barclay, who also own The Business, Scotland on Sunday and The Scotsman, had been seen as favourites to take control of the titles.

But a previous £260m offer for the Telegraph titles' owner, Hollinger Inc, agreed by ousted chief executive Lord Black of Crossharbour, was blocked by the company's board.

Among interested bidders in the Telegraph titles, which also includes The Spectator, were Express newspapers owner Richard Desmond and newspaper group Daily Mail and General Trust.

They both pulled out when the asking price rose, leaving the Barclay brothers and a private equity consortium including 3i as the remaining bidders in the auction.

But it was reported yesterday that Lord Black may use his 72 per cent voting stake in Hollinger International to attempt to block the latest Barclays offer.

Hollinger believes it does not need the permission of a majority shareholder to push the deal through, although this may be contested in the US courts.