Lord Saatchi, the former advertising mogul, has accused The Daily Telegraph’s would-be proprietors of overpaying for the right to own the title after his £350m offer for it was rejected.

Sky News has learnt an indicative bid from Lord Saatchi and Lady Lynn Forester de Rothschild, a former director of The Economist Group, has not made it through to the second round of an auction of the right-leaning newspaper.

Sources said they had been informed of the decision in recent days by Raine Group and Robey Warshaw, the bankers handling the Telegraph auction on behalf of RedBird IMI, an Abu Dhabi state-backed vehicle.

RedBird IMI’s attempt to take ownership of the Telegraph titles and The Spectator was thwarted by the last Conservative government’s decision to change media law to prevent foreign states exerting influence over national newspapers.

Last week, Sky News revealed Sir Paul Marshall, the hedge fund tycoon, had become the frontrunner to acquire The Spectator, one of Britain’s most influential political magazines.

Lord Saatchi and Lady de Rothschild, who have been advised by Lazard, are understood to have structured their offer for the Telegraph and Spectator to include contingent payments based on the future performance of the business.

In a statement issued to Sky News, Lord Saatchi and Lady de Rothschild said: “We are sorry Redbird IMI overpaid with £600m for the Telegraph.

“We are offering £350m plus further payments dependent on performance.

“Our bid is not the biggest – but it is the best.

“Whatever happens, this important national asset should end up in safe hands for the long term.”

Their comment drew a stinging response from RedBird IMI, for which a spokesman said: “They never signed an NDA [non-disclosure agreement]. They never made a serious bid.

“And they haven’t been invited into the second round.

“So, with all due respect, no one takes Maurice or his views on any of this seriously.”

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The elimination of Lord Saatchi’s offer after the initial phase of bidding leaves a number of other parties in contention to buy the Telegraph.

National World, the London-listed vehicle headed by industry veteran David Montgomery, has expressed a serious interest in bidding, while Sky News revealed last month that Nadhim Zahawi, the former chancellor, was lining up backers to finance an offer.

RedBird, the US-based investor which is part of the group that acquired the option to buy the Telegraph last year, could also play a role as a future investor in the assets.

However, Sir Paul’s negotiations to buy The Spectator have intensified doubts that he will also seek to buy the newspaper titles.

Lord Rothermere, the Daily Mail proprietor, pulled out of the bidding earlier in the summer amid concerns that he would be blocked on competition grounds.

The fate of the Telegraph, historically a staunch Conservative Party backer, has now been up in the air for more than a year.

Lloyds Banking Group, the UK’s biggest high street lender, seized control of its parent companies after the Barclay family fell behind on debt repayments.

The family had owned the Telegraph for nearly 20 years, but has seen a number of its assets fall into financial trouble.

The Barclays continue to control Very Group, the online retailer, with IMI also having extended financing to that business.

The Lloyds debt, which totalled more than £1.15bn, was repaid by RedBird IMI on behalf of the family.

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RedBird IMI is majority-owned by IMI, which is controlled by the UAE’s deputy prime minister and ultimate owner of Manchester City Football Club, Sheikh Mansour bin Zayed Al Nahyan.

The tabling of a £350m offer for the group will stoke doubts about whether RedBird IMI can expect to recoup the £600m it paid to acquire the call option.

People close to the process insisted on Thursday, however, that there remained “robust” interest in the Telegraph at significantly higher prices than that tabled by Lord Saatchi and Lady de Rothschild.

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