The future of The Telegraph newspaper remains uncertain as senior political figures demand the government seize control of its protracted sale process from the current UAE-backed owners.
Political Pressure Mounts Over Sale Process
Peers have called on Culture Secretary Lisa Nandy to remove the auction from RedBird IMI's control during heated exchanges in the House of Lords. The joint venture, majority-funded by the United Arab Emirates, was forced to restart the sale after its American partner RedBird Capital Partners abruptly withdrew last Friday.
Liberal Democrat spokesperson Christopher Fox declared the Department for Culture, Media and Sport had mishandled the situation and argued for an independent "white knight" buyer to rescue the prestigious titles. He suggested either the Cabinet Office or external media transaction experts should oversee the process instead.
Government's Limited Options
Conservative peer Michael Forsyth proposed the Competition and Markets Authority should conduct a "proper auction" to restore normal order. However, Labour minister Fiona Twycross defended the DCMS's approach, stating the culture secretary had "adhered to the letter of the law" in her quasi-judicial responsibilities.
The newspaper group has been in limbo for over two and a half years since Lloyds Bank seized control from the Barclay family over unpaid debts. RedBird IMI took ownership in late 2023 but must now sell due to new legislation banning foreign states from owning UK newspapers.
Financial and Political Complications
The current owners are seeking approximately £500 million for the Telegraph titles, though most media analysts value them closer to £350 million. Any forced sale resulting in significant losses for RedBird IMI would likely anger the UAE government, creating political complications.
Becket McGrath of Euclid Law noted that while the government could force a sale, it would "trigger a lot of bureaucracy and forces a bigger loss on them. It is not tempting for the government."
Potential bidders include GB News investor Sir Paul Marshall, who recently acquired The Spectator for £100 million, and Lord Rothermere's Daily Mail & General Trust. However, a DMGT bid would face regulatory scrutiny over competition concerns given their existing printing and advertising arrangements with the Telegraph.
Other previously rejected offers included a £350 million bid from Lord Saatchi and Lynn Forester de Rothschild last August, with additional performance-based payments attached.
