DMGT finance director Peter Williams said it would consider a bid if and when the Telegraph Group were to come on the market.

We said we would seriously take a look, as we are after all in the business of national newspapers, said Williams.

The move follows Express Newspapers owner Richard Desmonds claim that he had secured backing to buy the Telegraph Group should it be put up for sale.

Williams said DMGT had always been comfortable with its debt position, which he felt would not hold the company back from any potential acquisitions.

DMGT, he said, had not made any acquisitions for some time, and was now seeing more advantageous market conditions.

Maybe prices are looking more interesting, and Im not just referring to the Telegraph Group here, Williams said.

DMGTs debt stands at 873m and falling, and Williams said the company had around 100m of free cashflow a year, which could be used to fund future investments.

If it were to acquire the Telegraph Group, DMGT would be the second largest newspaper group in the UK, with a 26% market share, behind News International, which has a 32% share.

Story by Andy Scott