Black's Daily Telegraph sold

The Daily Telegraph, most prized asset in Lord Conrad Black's crumbling media empire, has been sold to Britain's Barclay twins.

• INDEPTH: Conrad Black

Sir Frederick and Sir David Barclay paid Hollinger International 730 million pounds ($1.8 billion) for the London-based paper, its sister publication The Sunday Telegraph and The Spectator magazine.

The price the Barclays paid is some 150 million pounds ( $370 million) more than initially estimated and reflects the fierce competition for Britain's biggest broadsheet daily.

The politically conservative newspaper has a circulation of about 900,000 copies, and annualized profits of about 40 million pounds ($99 million).

Other bidders including the owners of the Daily Mail and German publisher Axel Springer dropped out of the bidding earlier, saying the price had become too high.

• FROM JUNE 17, 2004: Daily Mail drops out of running for Hollinger's Telegraph

There was no word on Hollinger International's other papers, which include the Jerusalem Post, the Chicago Sun-Times and several regional Canadian papers, all of which had been put up for sale along with the Telegraph.

Hollinger International said it would pay down debt and was considering returning some of the proceeds to shareholders. The sale is to be completed by July 30.

It was unclear what action Lord Black, who is in a protracted legal battle with Hollinger International, would take over the sale.

Though in theory he controls Chicago-based Hollinger International through Toronto-based Hollinger Inc., he's been barred by an American court from interfering in the sales process.

The court ruling followed his ousting last December as chief executive of Hollinger International after shareholders and the board accused him of making unauthorized payments totaling $32 million to himself and associates.

• ARCHIVE: Conrad Black quits as Hollinger CEO; denies any impropriety

Earlier this year he attempted to sell all of Hollinger Inc., and thus control of Hollinger International, to the Barclays for about $600 million, but was stopped in the court.

Since then Hollinger has upped the stakes by suing him for $1.2 billion over alleged "racketeering."

Black, who acquired the Telegraph in 1985, denies all wrongdoing and is countersuing.

The reclusive Barclays, who live on their own English channel island, Brecqhou, already own U.K. papers The Scotsman, Scotland on Sunday and The Business.

They also own the department store and mail order chain Littlewoods.