Calling Daily Mail proprietor Lord Rothermere "arrogant", Desmond said that he would not be beaten by his rival in the same way the publisher had forced former Mirror Group-owner Robert Maxwell out of the market in the 80s.
Associated's Evening Standard has enjoyed complete dominance of the London daily market since Maxwell tried to break its monopoly with the London Daily News in 1987. The paper, which was launched as a 24-hour newspaper and updated throughout the day, is supposed to have cost Maxwell as much as £50m before he closed it.
"I am told how Vere Rothermere, the late owner of the Daily Mail and Evening Standard, dealt with Robert Maxwell by forcing him to spend millions to cock up the London Daily News," Desmond said.
"Well I have a message for Vere's son Jonathan, I am not Robert Maxwell and I have plans for dealing with the likes of you and your associates," he said.
His comments followed reports this morning that Associated Newspapers finance director Peter Williams had sought to reassure investors that it was in a strong position to defend its papers against any threat from rivals, at the company's AGM.
With the Evening Standard recording a circulation increase of 3.2% in January from 380,014 to 392,733, according to the ABC, the newspaper is in a stronger position, Williams said, as it prepared for the Evening Mail to launch.
Speaking to the Jewish educational organisation ORT today, Desmond said: "I keep reading that we will soon be launching a free London evening newspaper in direct competition to the Evening Standard. I suppose there is some logic here, as we own a printing plant whose presses aren't used during the day. We have the office capacity between 6am and 10am and we have 200 people who can sell advertising space."
Desmond added that he is continuing to invest in his papers, including a £60m promotional budget for his titles, which include the Daily Express, the Sunday Express and the Daily Star and Daily Star on Sunday, as well as celebrity weekly OK!.
Desmond also used the occasion to remind guests at the Jewish charity's breakfast meeting of Rothermere's links to Hitler. He said: "Vere Rothermere is also the man whose father said Hitler was right in dealing with the Jewish problem in Germany and how those same plans should be replicated in Britain."
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