A second investigation has been launched into a deal with the Berkeley family to transfer control of the Telegraph Newspaper Group, pushing back the deadline for a regulator's report on the threat to the public interest it poses by more than six weeks.
The UK government moved swiftly to order a second watchdog investigation after Barclays' UAE-backed consortium partner revealed last-minute corporate structure changes.
Announcing a new investigation on Friday, Culture Secretary Lucy Fraser criticized Redbird IMI for alerting the agency to the move to create a British holding company to be home to the Telegraph and Spectator titles at a “very late stage”. was.
On Wednesday, she was forced to issue a written statement setting out her “intention” to issue a new public interest intervention notice (PIIN) based on this development, two days before Ofcom and the Competition and Markets Authority (CMA) were scheduled to notify. It was done. Her initial findings, which she ordered in November.
The new research is similar, with Ofcom tasked with investigating the impact of the deal, including the accurate presentation of news, the free expression of opinion, and the need for sufficient voices and ownership. ing. The CMA will consider potential competition concerns.
The reinvestigation means both regulators will report to Mr Fraser on March 11, at which point he will have to decide whether to launch a longer, more detailed investigation. But if there are no concerns found in the reports, Frazier will have to accept the deal.
Nevertheless, most observers expect some issues to emerge from the initial investigation. This means the CMA will carry out its investigation over a maximum 24-week timetable, with the possibility of an eight-week extension if there are “extraordinary reasons”. This means that ownership issues will be an issue for the CMA. New government after the general election.
Redbird IMI derives most of its funding from Sheikh Mansour bin Zayed Al Nahyan, vice-president of the United Arab Emirates and owner of Manchester City Football Club, and the Barclays owe money to Lloyds Bank. The company has now paid off debts of £1.16bn. If the deal is finalized, the company said it will promptly convert the loan and take ownership.
The consortium, run by former CNN chief executive Jeff Zucker, said the change in corporate structure did not change “the identity, nature or economic interests of the ultimate shareholders.”
Redbird IMI told the Telegraph it “remains a completely passive investor” and “does not exercise any control”.
Former CNN chief Jeff Zucker, who runs RedBird IMI, has repeatedly said the company provides a commitment to protect the editorial and operational independence of its titles.
The investigation comes after the Telegraph appointed a new chief executive. Anna Jones, the former chief executive of the UK publishers of Cosmopolitan, Men's Health and Esquire, will replace Nick Huw, who has run Telegraph Media Group since 2017 and has resigned with immediate effect.
