A takeover bid for The Daily Telegraph from Sir Paul Marshall, the hedge fund tycoon, is in growing doubt days before a deadline for offers for the influential broadsheet newspaper.

Sky News understands that Sir Paul, a major shareholder in the television news channel GB News, has been considering in recent weeks whether to drop his interest in bidding for the Telegraph titles on a standalone basis.

Sources cautioned on Monday that the situation was fluid and that Sir Paul could yet decide to table an offer ahead of a Friday evening deadline imposed by RedBird IMI, the Abu Dhabi-backed vehicle which is orchestrating the sale process.

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He could, they added, also elect to join a broader consortium bidding for the newspapers should an acceptable one emerge.

However, the growing doubts about his formal participation in the auction – in which he has been a central figure for most of the last year – may deal a blow to RedBird IMI’s hopes of recouping the £600m it paid to acquire a call option intended to convert into ownership of the Telegraph titles and The Spectator.

One insider said that Sir Paul, who has also been linked to The Spectator during the last year, would be unwilling to pay anything like the valuation implied by the £600m RedBird IMI transaction.

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He had reportedly secured financing from Ken Griffin, the American founder of hedge fund Citadel, for a bid.

Last week, The Times revealed that the publisher of the Daily Mail had withdrawn from the auction because of the risk of a detailed competition inquiry.

Other prospective bidders for the newspapers include David Montgomery’s National World, and Lord Saatchi, the former advertising executive who Sky News revealed this month was working with the financier Lynn Forester de Rothschild.

Mediahuis, the Belgian media group, is also among the parties which have indicated an interest.

RedBird IMI’s ambitions of taking control of the Telegraph were thwarted by government intervention amid a backlash over the prospect of a foreign state effectively owning national newspaper assets.

Confirming the launch of the auction last month, a RedBird IMI spokesman said: “This has been a thorough process which involved speaking to interested parties from around the globe and it is no surprise that interest has remained extremely strong.”

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The fate of the Telegraph, historically a staunch Conservative Party backer, has been up in the air for over a year after Lloyds Banking Group seized control of its parent companies after the Barclay family, its long-standing owner, fell behind on debt repayments.

Earlier this year, Sky News revealed that Raine Group, best-known in Britain for its roles in recent deals involving Manchester United and Chelsea football clubs, and Robey Warshaw had been hired to advise on the next phase of the Telegraph’s ownership.

One person close to the Telegraph said its commercial prospects were robust, as had been made evident by its recently published accounts.

A spokesman for Sir Paul declined to comment, while Sir Paul said he would not comment while the auction was ongoing.

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