logo
Laws to allow UAE stake in The Telegraph approved by Lords

Laws to allow UAE stake in The Telegraph approved by Lords

Telegraph5 days ago
The House of Lords has approved legislation to enable the United Arab Emirates to become part-owner of The Telegraph against significant cross-party opposition.
Peers agreed to allow foreign states to take passive shareholdings in British newspapers of up to 15pc.
The move prepares the ground for the end of more than two years of damaging limbo for The Telegraph, which has effectively operated without an owner since June 2023.
Lords on Tuesday evening voted through a statutory instrument proposed by the Government to ease an existing outright ban on newspaper investments by foreign powers.
Peers rejected a rare 'fatal motion' tabled by the Liberal Democrats that attempted to block the legislation. The motion, which would have controversially overturned a vote in the House of Commons, was defeated by 267 votes to 155.
Gerry Cardinale, the founder of RedBird Capital, the US private equity firm in line to become the controlling shareholder in The Telegraph, said: 'Today marks an important milestone that provides the clarity we need to press ahead with RedBird Capital's acquisition of The Telegraph.
'With legislation now in place, we will move quickly and in the forthcoming days work with DCMS [the Department for Culture, Media and Sport] to progress to completion and implement new ownership for The Telegraph.'
A well-attended upper chamber heard arguments that the statutory instrument undermined the intention of the outright ban introduced last year to block an attempted takeover of The Telegraph.
The decision opened a diplomatic rift with the UAE, which ministers have been attempting to close, including in a visit to Abu Dhabi by Sir Keir Starmer in December.
The blocked bid was majority funded by IMI, a media company controlled by Sheikh Mansour bin Zayed Al Nahyan, the vice president of the UAE, which prompted a cross-party outcry over press freedom.
The UAE positioned itself to take control by repaying the overdue debts of the Barclay family, the previous owners, but did not reckon on a change in the law. There followed a year during which IMI tried to exit its investment in an auction which failed to deliver a bid able to match its price.
In May Lisa Nandy, the Culture Secretary, announced plans to treble the limit on foreign state investment to 15pc. Prior to the general election, Conservative ministers proposed a limit on foreign state investment of just 5pc to protect press freedom.
Ms Nandy said the shift was necessary to allow publishers greater access to sovereign wealth investment as they attempt to negotiate the decline of print newspapers.
Baroness Twycross, her junior minister in the Lords, this evening said: 'The far greater risk is how UK news media faces significant, genuinely existential challenges as their business models move away from print towards digital, and new technologies emerge.
'Whilst it is vital we support stronger protections for UK newspapers and other news media, we need to make sure we don't inadvertently make it harder for newspaper groups to survive.'
The Conservative Lord Black of Crossharbour, and deputy chairman of Telegraph Media Group, backed the Government.
He warned: 'It really is five minutes to midnight for much of the British press ... the passage of these regulations is absolutely vital to the future of the British press.'
The Telegraph last year reported a 35pc increase in operating profits to £54m on a turnover of £278m, up 5pc.
Lord Fox, the Lib Dem business spokesman behind the fatal motion, said: 'Whether the Government is trying to deliver capital to the sector or it is mending a diplomatic fence, in doing so they are parlaying foreign influence. Whatever the side-deals, they are not worth the cost of press freedom.'
He was supported by a group of 41 Conservative peers who went against the party's policy of supporting the legislation. The rebellion was larger than expected.
Their leader, Lord Forsyth, said: 'It is completely unacceptable that our parliamentary procedures should be overridden and that we should create an open door for foreign governments to get into our media.
'If we have foreign governments owning newspapers … that will mean there is a conflict of interest between our journalists and their proprietors. Between journalists who might want to write unpleasant things about some regimes.'
Peers appeared to ease the ban with some reluctance. The Tory peer Baroness Stowell of Beeston, who played an influential role in forcing action against the UAE bid for The Telegraph prior to the general election last year, criticised the Labour Government's subsequent handling of the 'sorry saga'.
Her 'motion of regret' rebuked ministers for a loophole in the statutory instrument which could allow multiple foreign powers to take stakes of up to 15pc each.
She said: 'What I find so frustrating is it's taken the Government a year to get to this point. And we still need a further set of regulations to be laid out to address the serious loophole.
'This foot-dragging and apparent incompetence have given rise to legitimate questions about who or what has really influenced the Government in its approach to this incredibly important matter.
'If the Government were acting only in the interests of the press industry, we would have got all this sorted and the ownership of The Telegraph long before now.'
But Lady Stowell argued that if the 15pc limit is properly enforced, it will allow investment in newspapers at a critical time.
She said: 'While I respect those who are framing this debate as a battle about the future of press freedom, actually, if it's a battle about anything, it's over the future of a financially viable press. We don't just need our newspapers to be editorially independent, we need them to survive.'
IMI is now expected to become a passive minority investor in the £500m takeover of The Telegraph by RedBird, meaning it will have no governance rights and be unable to appoint directors. The Government will be obliged to intervene and could unwind the deal if it is found to have sought influence.
RedBird was the junior financial partner in last year's blocked attempt, but has since agreed to increase its outlay to become the controlling shareholder.
Mr Cardinale has also lined up British minority investments from the Daily Mail publisher Lord Rothermere and Sir Leonard Blavatnik, the owner of the sports streaming service Dazn.
Ms Nandy is expected to trigger an initial investigation by the media regulator Ofcom of its potential impact on the public interest and by the Competition and Markets Authority of its compliance with the new foreign state investment regime.
Their findings will inform Ms Nandy's decision weeks later on whether to demand more in-depth scrutiny, taking about six months. That would mean The Telegraph would not be under new ownership until next year.
Lord Fox and Lady Stowell urged the Government to fully scrutinise RedBird's deal. It has faced attacks from Conservatives, including Sir Iain Duncan Smith over the longstanding business links to China held by John Thornton, RedBird's chairman.
After his motion to block the legislation was defeated, Lord Fox said: 'The Government's move to force through this legislation in the face of historic cross-party resistance is reckless.'
He said the Lib Dems would 'hold the Government's feet to the fire and limit the damage in any way we can'.
RedBird is expected to continue to develop ambitious investment and growth plans for The Telegraph as it navigates the regulatory process.
Mr Cardinale said: 'At 170 years old, The Telegraph is one of Britain's most iconic cultural institutions and frankly should be one of its greatest cultural exports.
'But The Telegraph can't rely solely on that heritage. If it doesn't proactively look to innovate and find new ways to grow and diversify its subscriber base and other revenue-based verticals, its relevance and important leadership position in the UK and globally will be severely challenged.
'RedBird is the right owner at the right time in this critical fork in the road for The Telegraph.
'RedBird is well-capitalised, has a track record in owning and growing iconic intellectual property businesses, and importantly has a track record in being 'talent-friendly' while also embracing financial growth.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

EU urges Ukraine to uphold independent anti-corruption bodies; Zelenskiy signals swift action
EU urges Ukraine to uphold independent anti-corruption bodies; Zelenskiy signals swift action

Reuters

time30 minutes ago

  • Reuters

EU urges Ukraine to uphold independent anti-corruption bodies; Zelenskiy signals swift action

BRUSSELS, July 27 (Reuters) - European Commission President Ursula von der Leyen called on Sunday for President Volodymyr Zelenskiy to uphold independent anti-corruption bodies, with the Ukrainian leader signaling that supporting legislation could be adopted within days. "Ukraine has already achieved a lot on its European path. It must build on these solid foundations and preserve independent anti-corruption bodies, which are cornerstones of Ukraine's rule of law," von der Leyen said in a post on X after a call with Zelenskiy. After a rare outburst of public criticism, Zelenskiy on Thursday submitted draft legislation to restore the independence of Ukraine's anti-corruption agencies - reversing course of an earlier bill aimed at stripping their autonomy. "I thanked the European Commission for the provided expertise," Zelenskiy said in a post on X after his Sunday call with von der Leyen. "We share the same vision: it is important that the bill is adopted without delay, as early as next week." Von der Leyen also promised continued support for Ukraine on its path to EU membership. "Ukraine can count on our support to deliver progress on its European path," she added.

John Swinney is accused of 'grandstanding' after holding private talks with top European official
John Swinney is accused of 'grandstanding' after holding private talks with top European official

Daily Mail​

time30 minutes ago

  • Daily Mail​

John Swinney is accused of 'grandstanding' after holding private talks with top European official

John Swinney has been accused of 'grandstanding' on issues outside his remit during private talks with a top European official who was in Scotland to meet Donald Trump. The First Minister met European Commission President Ursula von der Leyen in Glasgow. The talks happened on Saturday evening without any media being alerted about the meeting, with officials disclosing yesterday that 'the UK's relationship with the European Union ' was discussed, as well as the current situation in Gaza and Ukraine, and Scotland's 'important partnership' with Europe. International relations are reserved to Westminster and Scottish ministers are supposed to stick to devolved areas when holding talks with overseas political leaders. The Scottish Government last night confirmed that no officials from the Foreign, Commonwealth and Development Office (FCDO) were present despite the First Minister's discussions covering foreign affairs. Scottish Conservative deputy leader Rachael Hamilton said: 'John Swinney may enjoy meeting international leaders and grandstanding about issues outwith the SNP 's remit. 'But most Scots would prefer him to reduce taxes, put businesses on an equal footing with firms in other parts of the UK, and repair the damage his government has inflicted on essential services like our schools and NHS.' Mr Swinney met Ms von der Leyen on Saturday after she arrived in Scotland to hold talks about an EU/US trade deal with President Trump at his Turnberry resort in Ayrshire. Sir Keir Starmer is set to meet the President to discuss issues including a ceasefire in Gaza and the UK's trade deal with the US today at the same venue. Mr Swinney is also due to hold talks with the President during his four-night stay in Scotland. Labour peer Lord George Foulkes said Mr Swinney's discussions with Ms von der Leyen about reserved issues are a 'huge concern'. He said: 'He is interfering in areas which they [the Scottish Government] do not have responsibility. They don't know the sensitivities, they don't have the advice of the FCDO and MOD specialists, so they are not advised properly and they cause confusion if they give different messages from the UK Government. 'On all those reserved areas, the UK Government speaks for Scotland just as much as the rest of the UK. This is them pretending to be independent, which is a total nonsense.' He also raised concerns that Mr Swinney could cause further confusion during his planned talks with Mr Trump. Lord Foulkes said: 'There could be a confusion of the message to Ursula von der Leyen and indeed to Trump. 'He is going to talk about trade to President Trump. Trade is a reserved area. It's an absolute nonsense and perpetuates the myth that Scotland is somehow different to the rest of the UK.' Mr Swinney last night confirmed he will raise 'global humanitarian issues' which are 'at the forefront of many people's minds' with the President. He said: 'It is of utmost importance that we discuss what action can be taken to end the horrific suffering we are witnessing around the world, particularly the unimaginable hardship being endured by people in Gaza and the need for an urgent ceasefire.' Humza Yousaf, Mr Swinney's predecessor, sparked a row with the previous Foreign Secretary Lord Cameron after holding private talks about Gaza with the president of Turkey without UK Government representatives in attendance. Protocols require FCDO officials to attend meetings between representatives of the devolved administrations and representatives of foreign governments. After Mr Yousaf's talks with Mr Erdogan, Lord Cameron threatened to throw Scottish Government officials out of overseas Foreign Office premises if there are any more breaches of the protocol. The Scottish Government said FCDO officials 'assisted in facilitating' the meeting between Mr Swinney and Ms von der Leyen. Sir Keir will meet the US Trump for a formal bilateral meeting this afternoon. Afterwards, they are due to travel for a 'private engagement' at Mr Trump's other Scottish venue on the Menie Estate in Aberdeenshire, which is expected to include dinner. Details of the Menie engagement have been kept under wraps and Downing Street was unable to confirm if the Prime Minister will take part in a round of golf. Sir Keir will risk a major clash with Mr Trump by raising Gaza. Last week, Mr Trump said Hamas 'didn't really want to make a deal' on a new Gaza ceasefire deal. A Number 10 spokesman said: 'The leaders are expected to talk about advancing implementation of the landmark Economic Prosperity Deal so that Brits and Americans can benefit from boosted trade links between their two countries. 'The Prime Minister is also expected to welcome the President's administration working with partners in Qatar and Egypt to bring about a ceasefire in Gaza. 'He will discuss further with him what more can be done to secure the ceasefire urgently, bring an end to the unspeakable suffering and starvation in Gaza and free the hostages who have been held so cruelly for so long.' Sir Keir is hoping to use the talks to display the strength of the UK/US relationship. It comes ahead of the President's State visit to the UK in September.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store