The UK government has intervened in the imminent sale of The Telegraph media company to Redbird IMI, an American and Emirati-owned fund, citing public interest.
Culture Minister Lucy Frazer has notified the current owner, the Barclay family, and the investment fund that the government has requested the Competition and Markets Authority (CMA) and media regulator Ofcom to submit a report on the sale’s potential impact on press freedom.
The report is expected to be complete by 26 January.
The UK government believes public interest considerations may be relevant and thus has sought an investigation.
The sale process for the British media group, which publishes The Telegraph, The Sunday Telegraph and The Spectator, began in October. The Barclay family is selling the group to settle debts of more than £1.2 billion, but the sale has caused concern within the political class in Britain.
The prospective buyer is a joint venture between American Redbird and IMI, an Abu Dhabi-based fund owned by Vice President and Manchester City owner Mansour bin Zayed Al Nahyan. It recently agreed on a deal with the Barclay family to pay off its debt to Lloyds, which would give Redbird IMI control over The Telegraph.
Lloyds is currently reviewing the agreement, according to a source close to the case.
IMI is said to be a passive investor in the joint venture, with management and operational responsibility lying with the Americans. Former CNN boss Jeff Zucker is in charge of the joint venture.
Several other media companies were candidates to take over The Telegraph, including German Axel Springer (Bild), DMGT (Daily Mail) and Mediahuis.
Sources told Reuters last month that the Belgians want to expand across the channel, but it was unclear whether a bid would actually materialise.
