UK Government studies intervening in sale process of Telegraph media group
Date
11/23/2023 3:14:14 AM
(MENAFN) The conservative British government has announced its contemplation of intervening in the sale process of the Telegraph media group, citing "public interest." This development comes amid the potential management takeover of the newspaper by an American-Emirati fund. The Telegraph group, encompassing the influential conservative daily The Telegraph and the weekly Spectator magazine, is a focal point of concern within the political sphere.
The sale of this prominent media group has raised eyebrows, particularly regarding the possibility of a foreign entity assuming ownership. The group faced bankruptcy in June, attributed to the failure to repay a loan owed by the Barclay family, who have held ownership since 2004. Several representatives have voiced apprehensions about the implications of a foreign takeover.
Culture Minister Lucy Fraser addressed Parliament on Wednesday, stating that she is contemplating issuing a "public interest intervention notice." Such a notice could trigger an investigation by Ofcom, the media regulator, based on concerns surrounding potential public interest considerations in the sale. Fraser's initiative underscores the government's intent to scrutinize the implications of the Telegraph group's ownership transition.
Various stakeholders involved in the sale process are expected to provide details in response to this announcement by Thursday afternoon. The move comes after British Lloyds Bank, the Barclay family's creditor, initiated the sale of the Telegraph newspaper in October to settle debts amounting to approximately £1.2 billion (USD1.51 billion).
An agreement reached on Monday between the American Redbird Fund and the Abu Dhabi Media Investment Fund (IMI) and the Barclay family outlines plans to settle the debts owed to Lloyds Bank. This collaborative effort is poised to take control of the Telegraph group, steering its future direction.
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