HBOS and HSBC are backing Desmonds bid. An Express spokesman said: He is ready to move if and when the Telegraph comes on the market.

Many observers believe Desmonds joint ownership of West Ferry Printers, the Docklands newspaper plant that prints the Express, Daily Star and the Telegraph, gives him the whip hand in any negotiations.

Under a pre-existing contract, Express Newspapers has the automatic right to buy the Telegraph Groups 50% stake in the plant if the newspaper publisher changes hands.

However, the Telegraph Group has refuted suggestions that any buyer of the Telegraph would have to arrange printing with Desmond before brokering a deal.

The Telegraph is contracted to be printed at West Ferry until 2009 regardless of any change of ownership, said Dan Colson, Telegraph Group chief executive and Hollingers new chief operations officer.

Story by John Davies