Latest news with #foreignownership
Telegraph
4 days ago
- Business
- Telegraph
Labour faces embarrassing defeat over foreign state ownership of newspapers
The House of Lords is preparing to inflict an embarrassing defeat on Labour over its ' deeply problematic ' plans to let foreign powers become part-owners of British newspapers. Peers including a former chancellor, a former director of public prosecutions and the current chairman of the press regulator are in open revolt over proposals by Lisa Nandy, the Culture Secretary, to relax an outright ban on foreign state shareholdings to allow passive stakes of up to 15pc. The basic principle was expected to be reluctantly accepted by Parliament, in part to end the destabilising uncertainty at The Telegraph caused by a blocked takeover bid bankrolled by the United Arab Emirates. However, a loophole that it is feared could allow foreign powers to team up to gain sway over Britain's free press has stoked a rebellion capable of defeating the Government. As proposed, the legislation would enable foreign states to own up to 15pc if they are not cooperating with each other. Lord Young, the journalist and founder of the Free Speech Union campaign group, has spearheaded an open letter to Ms Nandy demanding she tighten the proposed laws. It has dozens of signatures from Conservative peers of all stripes, including former Cabinet ministers Lord Lamont, Lord Baker and Lord Lilley, as well as crossbenchers including Lord Macdonald, the former director of public prosecutions. The letter to Ms Nandy said her proposals to allow multiple foreign powers to own shares in a single newspaper were 'deeply problematic'. It added: 'It has to be assumed that if different state actors are intent on exerting influence through their shareholding, then some may be prepared to do so covertly and in collusion with other states. 'To guard against this risk, the draft regulations should ensure that the cap in the percentage of shares that can be owned in a British newspaper enterprise is a total cap.' The letter was also signed by Lord Faulks, the chairman of the press regulator Ipso; Baroness Fleet, the former editor of The Evening Standard; and Lord Goodman, the former editor of the Conservative Home website. Other prominent backers included Lord Brady, the former chairman of the 1922 committee of Conservative backbenchers; Baroness Deech, the chairman of the House of Lords appointments commission; Lord Swire, the former Foreign Office minister; and Baroness Spielman, the former head of Ofsted. Lord Roberts, the Churchill biographer, has also signed and has written in The Telegraph that the legislation 'must be done in a way that entrenches the traditional freedoms of our press'. The letter marks a significant escalation of opposition to the legislation in the Lords. Baroness Stowell, who last year played a critical role in forcing the Government to block the UAE bid for The Telegraph, was among the first to raise concerns over multiple state shareholdings in a letter to Ms Nandy last week. She did not sign Lord Young's letter, but warned the Government it faced defeat if it pressed ahead, even though the Conservative leadership in the Commons had signalled it did not oppose the proposed laws. The Liberal Democrats have tabled a rare 'fatal motion' to veto the statutory instrument which may become the focus of the Lords rebellion. Lady Stowell said: 'I really hope the Government reconsiders these proposals quickly. 'It would not be acceptable for multiple foreign states to own stakes of up to 15pc in the same newspaper, yet for reasons unclear, that is a scenario Lisa Nandy wants to allow. 'Unless she closes this obvious loophole, I can see peers swinging behind a fatal motion to block this legislation. It would be a rare step to take, but I know colleagues feel very strongly about this crucial matter of press independence.' The Conservatives are the biggest group in the Lords. Alongside the Liberal Democrats and some crossbenchers they could readily defeat the Government and spark a battle with the Commons. Lady Stowell is among the parliamentarians to have said she would accept a limit of 15pc with reservations, were it not for the risk of cumulative shareholdings. The figure is three times the limit proposed last year by Rishi Sunak's government. Ms Nandy decided to lift it following lobbying on behalf of Rupert Murdoch and Lord Rothermere, the owner of the Daily Mail. Both media moguls have sought sovereign wealth investment in the past. Lord Rothermere previously considered a takeover bid for The Telegraph with financial backing from the Gulf. Mr Murdoch relied on the support of a Saudi royal shareholder to fight off the investor rebellion sparked by the phone-hacking scandal. Lobbyists for Lord Rothermere and Mr Murdoch argued that a 5pc cap on foreign state investment would cut news publishers off from a significant source of potential investment in digital growth at a time of upheaval as print newspapers decline. The row over cumulative shareholdings threatens to further delay a conclusion to the two-year saga over ownership of The Telegraph. RedBird Capital, the US private equity firm that was the minority investor in the blocked UAE takeover, has agreed in principle to become controlling shareholder in a £500m deal. IMI, the media investment vehicle owned by UAE royal Sheikh Mansour bin Zayed Al Nahyan is expected to retain up to 15pc. However, the deal has not been finalised and is likely to require a settled legal position before it can face regulatory scrutiny. The Department for Culture, Media and Sport declined to comment. Full list of signatories Lord Biggar Baroness Meyer Lord Moylan Lord Jackson of Peterborough Baroness Eaton Lord Brady Lord Elliott of Mickle Fell Baroness Finn Baroness Fleet Baroness Noakes Baroness Bray of Coln Lord Strathcarron Baroness Lea of Lymm The Earl of Leicester Lord Borwick Lord Roberts of Belgravia Baroness Deech Lord Sherbourne Lord Mackinlay Lord Ashcombe Baroness Coffey Baroness Foster of Oxton Lord Moynihan of Chelsea Lord Evans of Rainow Lord Forsyth of Drumlean Baroness Buscombe Lord Sharpe of Epsom Lord Mancroft Lord Robathan Baroness Nicholson Lord Wrottesley Baroness Cash Lord Goodman Lord Shinkwin Baroness Altmann CBE Edward Faulks KC Lord Swire Baroness Fox of Buckley Baroness Spielman Lord Lamont Lord MacDonald of River Glaven Lord McInnes of Kilwinning Lord Hamilton of Epsom Lord Reay Lord Pearson of Rannoch Lord Lilley Lord Baker of Dorking Lord McLoughlin Baroness Morrissey
Bloomberg
6 days ago
- Business
- Bloomberg
Algeria Plans to Allow Foreign Firms to Mine for Critical Metals
Algeria is poised to allow wider foreign ownership of mines as the gas-rich nation looks to boost production of minerals including phosphate, iron ore and lithium to diversify its economy. New legislation permitting foreign companies to hold as much as 80% of mining projects is set for a vote in parliament, potentially marking a major shift for the nation where state enterprises wield majority control.
Telegraph
02-06-2025
- Business
- Telegraph
Liberal Democrats in bid to block foreign state ownership of newspapers
He said: 'Last year, a coalition of members in both Houses supported a ban on foreign state ownership in UK newspapers, bringing into law legislation that protected our historic, free and independent press from the influence of foreign regimes. 'My benches supported your Government in introducing that crucial legislation. Today, we find ourselves facing new plans to scrap it. 'We should all be alarmed at the prospect of foreign powers – whose interests may diverge sharply from our own – gaining a foothold in our media landscape and shaping it, insidiously, to their own narrative. We believe that it is not just a policy misstep but a fundamental error that exposes our media to unacceptable risks.' He argued that the proposed 15 per cent cap was riddled with loopholes and could allow a 'consortium of foreign regimes' to gain a controlling interest in a British newspaper. Lord Fox, the Lib Dem business spokesman, has tabled a fatal motion to block the planned legislation. Press freedom 'not for sale' Addressing Tory peers, Lord Newby said: 'We are all aware of the arithmetic of our House – the motion will not pass if you do not support it. This is a moment for Parliament to send a message, united across party lines, that the freedom of the British press is not for sale.' RedBird Capital, the US private equity firm, reached an agreement in principle to acquire control of The Telegraph for £500 million from RedBird IMI. Gerry Cardinale, the founder and managing partner of RedBird Capital, said the deal marked 'the start of a new era' for the newspaper.
Yahoo
28-05-2025
- Business
- Yahoo
Labour plan to let foreign states team up to own newspapers sparks alarm
Labour's plan to let foreign powers own shares in newspapers has sparked alarm that they could team up to gain sway over Britain's free press. Lisa Nandy, the Culture Secretary, has proposed laws to allow states to hold passive stakes of up to 15pc in newspapers and news websites. There is no planned rule on what portion a group of foreign states could own, however, raising concerns in the House of Lords over 'where will it end?' The legislation is partly intended to dispel the uncertainty faced by The Telegraph since a takeover bid led by the United Arab Emirates was blocked by the Conservatives over a year ago. By easing an existing outright ban on foreign state ownership, Ms Nandy's plan is also meant to help improve British relations with the wealthy Gulf state, which were damaged by the saga. The UAE is now expected to become a silent minority shareholder in a consortium led by RedBird Capital Partners, the US private equity firm which was previously the junior partner in its bid. The Conservative Party leadership has said it will support a limit of 15pc. However, after analysing the proposed statutory instrument, the Tory peer Baroness Stowell, a pivotal figure in the rebellion that derailed the UAE bid, has written to Ms Nandy to demand changes. Baroness Stowell, who has said she will not oppose single passive stakes of up to 15pc, told The Telegraph: 'Without a cumulative limit on foreign state shareholdings you have to ask where will it end? 'You could have countries teaming up to seek influence. I don't understand why this hasn't been addressed in the proposed legislation. It may be that there are other ways the Government believes it can address this risk. If so, let's hear it and debate it.' Ministers have other powers to block foreign investments, such as those they believe are a potential threat to British security, under the National Security and Investment Act. Lord Fox, the Liberal Democrats' culture spokesman in the Lords, backed Baroness Stowell's demand for a rethink and said there were 'glaring loopholes … ready to be taken advantage of by foreign states'. He added: 'It's wrong that this Government has no qualms with multiple states owning unlimited aggregate stakes in British papers. The independence of UK media must not be made subject to foreign sway. 'We are pressing peers from right across the House to stand with us, block this legislation and defend press freedom.' The Liberal Democrats have tabled a rare 'fatal motion' in the Lords to obstruct Ms Nandy's legislation. They argue that it would effectively overturn the ban on foreign state ownership approved by Parliament last year. Some Conservative peers, led by Lord Forsyth, are expected to back the bid to block the legislation. He has said the idea that a stake of 15pc could be entirely passive was 'utterly naive'. The Conservatives originally proposed a limit of just 5pc to allow sovereign wealth funds to make small passive investments in newspapers, such as via share index trackers. Ms Nandy opted to increase the limit three-fold after lobbying on behalf of Rupert Murdoch and Lord Rothermere, the owner of The Daily Mail. She agreed with them that a 5pc limit would cut news publishers off from a potentially vital source of international capital at a turbulent time as the decline of print accelerates. It is not clear whether any foreign state has already made an equity or debt investment in a UK news publisher. The Independent news website, controlled by Lord Lebedev, sold a 30pc stake to a Saudi investor in 2017. A subsequent Ofcom investigation explored potential links between the investor and the Saudi state but did not draw conclusions. The Independent subsequently formed an editorial and commercial partnership with a Saudi state media company. Under Ms Nandy's proposals, she will have a duty to trigger regulatory investigations when there are concerns of foreign state influence. Baroness Stowell said there was a need to ensure MPs and peers had a bigger role, with a guarantee that questions about press freedom would be heard in the chamber. Questions she attempted to ask about the fate of The Telegraph were rejected by parliamentary officials in consultation with the Government on three occasions. Baroness Stowell said: 'My concern is that Parliament has all the tools it needs to protect freedom of the press. This is especially important given the proposals from the Government create an ongoing duty to monitor and investigate issues with foreign state investors. 'When it comes to press freedom it is critical that Parliament can ask any questions it sees fit.' The Department for Culture, Media and Sport was asked for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
28-05-2025
- Business
- Telegraph
Labour plan to let foreign states team up to own newspapers sparks alarm
Labour's plan to let foreign powers own shares in newspapers has sparked alarm that they could team up to gain sway over Britain's free press. Lisa Nandy, the Culture Secretary, has proposed laws to allow states to hold passive stakes of up to 15pc in newspapers and news websites. There is no planned rule on what portion a group of foreign states could own, however, raising concerns in the House of Lords over 'where will it end?' The legislation is partly intended to dispel the uncertainty faced by The Telegraph since a takeover bid led by the United Arab Emirates was blocked by the Conservatives over a year ago. By easing an existing outright ban on foreign state ownership, Ms Nandy's plan is also meant to help improve British relations with the wealthy Gulf state, which were damaged by the saga. The UAE is now expected to become a silent minority shareholder in a consortium led by RedBird Capital Partners, the US private equity firm which was previously the junior partner in its bid. The Conservative Party leadership has said it will support a limit of 15pc. However, after analysing the proposed statutory instrument, the Tory peer Baroness Stowell, a pivotal figure in the rebellion that derailed the UAE bid, has written to Ms Nandy to demand changes. Baroness Stowell, who has said she will not oppose single passive stakes of up to 15pc, told The Telegraph: 'Without a cumulative limit on foreign state shareholdings you have to ask where will it end? 'You could have countries teaming up to seek influence. I don't understand why this hasn't been addressed in the proposed legislation. It may be that there are other ways the Government believes it can address this risk. If so, let's hear it and debate it.' Ministers have other powers to block foreign investments, such as those they believe are a potential threat to British security, under the National Security and Investment Act. Lord Fox, the Liberal Democrats' culture spokesman in the Lords, backed Baroness Stowell's demand for a rethink and said there were 'glaring loopholes … ready to be taken advantage of by foreign states'. He added: 'It's wrong that this Government has no qualms with multiple states owning unlimited aggregate stakes in British papers. The independence of UK media must not be made subject to foreign sway. 'We are pressing peers from right across the House to stand with us, block this legislation and defend press freedom.' The Liberal Democrats have tabled a rare 'fatal motion' in the Lords to obstruct Ms Nandy's legislation. They argue that it would effectively overturn the ban on foreign state ownership approved by Parliament last year. Some Conservative peers, led by Lord Forsyth, are expected to back the bid to block the legislation. He has said the idea that a stake of 15pc could be entirely passive was 'utterly naive'. The Conservatives originally proposed a limit of just 5pc to allow sovereign wealth funds to make small passive investments in newspapers, such as via share index trackers. Ms Nandy opted to increase the limit three-fold after lobbying on behalf of Rupert Murdoch and Lord Rothermere, the owner of The Daily Mail. She agreed with them that a 5pc limit would cut news publishers off from a potentially vital source of international capital at a turbulent time as the decline of print accelerates. It is not clear whether any foreign state has already made an equity or debt investment in a UK news publisher. The Independent news website, controlled by Lord Lebedev, sold a 30pc stake to a Saudi investor in 2017. A subsequent Ofcom investigation explored potential links between the investor and the Saudi state but did not draw conclusions. The Independent subsequently formed an editorial and commercial partnership with a Saudi state media company. Under Ms Nandy's proposals, she will have a duty to trigger regulatory investigations when there are concerns of foreign state influence. Baroness Stowell said there was a need to ensure MPs and peers had a bigger role, with a guarantee that questions about press freedom would be heard in the chamber. Questions she attempted to ask about the fate of The Telegraph were rejected by parliamentary officials in consultation with the Government on three occasions. Baroness Stowell said: 'My concern is that Parliament has all the tools it needs to protect freedom of the press. This is especially important given the proposals from the Government create an ongoing duty to monitor and investigate issues with foreign state investors. 'When it comes to press freedom it is critical that Parliament can ask any questions it sees fit.'
