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Telegraph
2 days ago
- Business
- Telegraph
MPs demand inquiry into ‘Chinese links' to Telegraph takeover
They were joined by Tory MPs Bob Blackman, Sir Desmond Swayne and Neil Shastri-Hurst, the SNP's Chris Law and Labour's Maria Rimmer. The four peers who signed the letter were Baroness D'Souza, Lord Shinkwin, Baroness Meyer and Lord Alton of Liverpool. The letter went on to call for a 'full and transparent investigation into the acquisition'. It concluded: 'The last attempt at a sale of the Telegraph was finally blocked by the UK government on the grounds of undue influence of foreign powers on an important UK news publication. 'To allow the sale to go through at this point when so much of the financing of the RedBird bid remains shrouded in mystery would make a mockery of the existing legislation. 'Those who have invested in RedBird should surely be known before any sale approval can be allowed.' The group said that John Thornton, the chairman of RedBird Capital, is a member of the China Investment Corporation (CIC), a sovereign wealth fund that manages part of Beijing's foreign exchange reserves. They claimed Mr Thornton also took part in meetings with senior figures from the Chinese Communist Party (CCP) last year and earlier this year. British-backed rival attempting to disrupt sale The 71-year-old retired as president of Goldman Sachs in 2003 to become a professor at Tsinghua University, one of China's leading universities. Goldman Sachs said at the time that Mr Thornton would stay on as a senior adviser to the bank, with a particular focus on Chinese clients and strategy. Sources close to RedBird told The Guardian that no Chinese state funds were involved in the deal. A press release issued by the Chinese government in April said He Lifeng, a senior Chinese official, had met with Mr Thornton to 'exchange views on China-US economic and trade relations and [the] macroeconomic situation'. The release said Mr Thornton had '[noted] that US-China relations are very important', and that he would 'continue to play a role in […] promoting the stability of the relations between the two countries'. It was announced on May 23 that Gerry Cardinale, the founder of RedBird Capital, had signed an agreement in principle to acquire control of The Telegraph. However, no final agreements are in place, and a British-backed rival is attempting to disrupt the sale. A number of regulatory hurdles also await. 'New era for The Telegraph' Mr Cardinale said last month: 'This transaction marks the start of a new era for The Telegraph as we look to grow the brand in the UK and internationally, invest in its technology and expand its subscriber base. 'We believe the UK is a great place to invest, and this acquisition is an important part of RedBird's growing portfolio of media and entertainment companies in the UK.' RedBird has said it hopes that The Telegraph will be able to reinvest more of its profits and become a force in US and global journalism. Mr Cardinale is also understood to be in detailed talks with Lord Rothermere, the owner of the Daily Mail, as he seeks to complete the consortium. Foreign state ownership of newspapers was banned outright in 2024 following a cross-party outcry. While RedBird IMI does not currently control The Telegraph, it is the owner of debt secured against it.
Times
14-05-2025
- Business
- Times
Government ‘under no obligation' to intervene in Telegraph sale
Lisa Nandy, the culture secretary, has said that she is under no legal obligation to intervene in an Abu Dhabi-led sale of The Telegraph despite protestations from members of the House of Lords. Nandy stated that she had no 'reasonable grounds' for believing an Abu Dhabi joint venture was poised to seize control of the title and therefore did not have a duty to issue a legal notice under laws barring foreign state ownership of UK media outlets. RedBird IMI, a joint venture part-funded by an Emirati royal, is seeking to sell The Telegraph after its bid to convert debt secured against the title into equity was blocked by a new ban on foreign state owners in March last year. • Telegraph sale in limbo
