It has long been speculated that this is the preference of Lazard, the investment bank running the sale, because such a deal would alleviate taxes that Hollinger would have to pay by selling off the assets, which also include the Jerusalem Post and Chicago Sun-Times, piece by piece.
Bidders have accessed detailed data on Hollinger's finances and are to meet management at the beginning of next week, with final bids due the week of May 10. It is estimated that at least seven bidders have made it to the second round.
Only two groups are reported to have submitted bids for the whole company -- US private equity firm Kohlberg Kravis, Roberts & Co and a joint bid from media entrepreneur Haim Saban and German media group Axel Springer.
Other bidders -- including the partnership of Daily Mail and Cinven; Apax; 3i; Candover; and the Barclay Brothers -- only want to buy the Daily and Sunday Telegraph. It is unclear whether these companies will consider bidding for all of Hollinger if necessary.
Bids have ranged from £550m to £650m for the Telegraph. It is estimated that offers for the entire company could reach £1bn.
According to sources, Lazard is approaching UK-only bidders and asking them to team up with those who are bidding for US assets to aid an offer for the whole company.
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