Britain intervenes to refer Abu Dhabi-backed Telegraph deal to regulators
Reuters
Published Nov 30, 2023 17:47
Updated Nov 30, 2023 21:05
LONDON (Reuters) -Britain will intervene in the acquisition of the Telegraph Media Group by Abu Dhabi-backed RedBird IMI (LON:IMI) on public interest grounds, with regulators on Thursday asked to examine the deal's impact on accuracy and freedom of expression.
The right-leaning Daily Telegraph broadsheet and Spectator magazine, favourites of politicians in the ruling Conservative Party, are being sold after Lloyds Banking Group (LON:LLOY) in June seized control following a long-running dispute with owners, the Barclay family.
The Barclays (LON:BARC) have teamed up with RedBird IMI, which is led by former CNN executive Jeff Zucker, in a bid to repay a 1.2 billion pound ($1.5 billion) debt. The plan would hand control of the titles to RedBird IMI through a debt-for-equity swap.
IMI (International Media Investments) is backed by Mansour bin Zayed Al Nahyan, a member of the ruling family of Abu Dhabi and the owner of Manchester City soccer club.
The sale had been paused until a court hearing scheduled for Dec. 4 to give the consortium time to repay the debt.
Last week, the British government told RedBird IMI in a letter that media minister Lucy Frazer was concerned about its potential to influence the Telegraph's operations.
On Thursday, Frazer said: "My department has today written to the Barclay family and RedBird IMI, the current and proposed owners of Telegraph Media Group, to inform them that I will be issuing a Public Interest Intervention Notice."
Frazer added that as a result, Britain's Competition Markets Authority (CMA) and media regulator Ofcom would examine the deal, looking at "the need for accurate presentation of news and free expression of opinion in newspapers".
"I have asked both the CMA and Ofcom to report back to me by 26 January 2024," Frazer said.
RedBird IMI said that it welcomed "the opportunity to provide the government with the information needed to scrutinise our deal, and we will continue to cooperate fully with the government and regulator throughout this process."
"RedBird IMI remains entirely committed to maintaining the existing editorial team of the Telegraph and Spectator publications and believes that editorial independence for these titles is essential to protecting their reputation and credibility," it said in a statement.
Get The App
The Telegraph Media Group did not immediately respond to requests for comment.
($1 = 0.7925 pounds)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.