The Culture Secretary has made a new intervention in the planned takeover of Telegraph Media Group (TMG) by the Abu Dhabi Support Fund.
Lucy Fraser has issued a new Public Interest Intervention Notice (PIIN), extending the deadline for Ofcom and the Competition and Markets Authority (CMA) to submit their findings into the takeover.
Her department sent a letter to lawyers representing the Berkeley family and TMG's current and prospective owners, Redbird IMI, expressing concerns about “the need for accurate presentation of news and free expression of opinion in Tokyo.” informed the decision taken by. newspaper”.
She had already activated a PIIN in November to investigate the potential impact on press freedom if the Daily Telegraph and The Spectator were taken over by Redbird IMI as proposed.
Mr Fraser said the new reporting deadline for Ofcom and the CMA was 9am on March 11.
The new intervention comes as Redbird IMI, an investment fund majority-owned by UAE Vice President Sheikh Mansour bin Zayed Al Nahyan, establishes a holding company for the UK-based Telegraph newspaper. This was done after announcing a new corporate structure.
“Following the reorganization of the Redbird IMI Media Joint Venture, LCC is no longer part of the corporate structure of the proposed TMG acquisition and has been replaced by the RB IMI AIV Limited Partnership,” the letter from the Ministry of Culture, Media and Culture said. be. Sports (DCMS) spoke to lawyers representing Red Bird IMI and RB Investco.
The merger means that RB Investco will “gain ownership and control over TMG,” which Fraser said means RedBird IMI will be “a completely passive company with no management or operating rights over TMG.” It points out that these are “practical and technical steps” to be taken to prove that a company is a qualified investor. TMG”.
The letter goes on to say: “The Secretary of State would like to ask you to explain how the structural changes you have made will impact on public interest considerations, editorial independence and the fact that IMI is not involved in its operations, including editorial. We believe that further research is needed to fully consider the efforts associated with ensuring that Its influence in Tokyo is sufficient to address public interest concerns. ”
On Friday, TMG bosses resigned from the newspaper with immediate effect amid a takeover plan.
Anna Jones, the media group's first female boss, will succeed Nick Huw, who has served as business director since 2017.
She will be tasked with navigating the business through the turmoil of an acquisition plan.
The foundation announced in November that it had reached an agreement with the Barclays to take control of the newspaper group and the Spectator magazine by repaying debts to its Lloyds bank.
The government's new intervention comes as The Spectator chairman Andrew Neil becomes the latest person to rally against the potential takeover and call on ministers to block the deal. .
The journalist and broadcaster told the BBC he would quit his role at the 200-year-old publication if the “absurd” takeover went through.