Nov 28 (Reuters) - The bid for Britain's Telegraph

newspaper has been extended until the end of the year as

preferred bidder Dovid Efune faces funding delays, the Financial

Times reported on Thursday citing sources.

Dovid Efune, publisher of The New York Sun, has been given

at least two more weeks, as he is still in talks with U.S. funds

to raise financing for the deal expected to be valued at about

550 million pounds ($697.68 million), the report said.

Abu Dhabi-backed RedBird IMI dropped its pursuit of buying

the newspaper group in April and decided to sell instead, after

Britain said it would stop foreign governments owning

newspapers. It opened bids for its sale of the Telegraph and

Spectator in June.

Potential bidders, according to other news reports, include

hedge fund owner Paul Marshall; DMGT, which owns the Daily Mail;

Belgian Group Mediahuis; and National World.

($1 = 0.7883 pounds)