A second inquiry is ordered in Telegraph takeover

THE Culture Secretary last night ordered a second probe into the proposed takeover of the Daily Telegraph by a UAE-backed fund.

Lucy Frazer issued a new Public Interest Intervention Notice, saying it was necessary because of concerns over ‘accurate presentation of news and free expression of opinion in newspapers’.

It means a decision on the proposed takeover will be delayed until at least March 11.

It came after potential buyer RedBird IMI tried to respond to criticisms that a foreign government would ultimately own the newspaper, risking freedom of speech, by setting up a UK-based holding company at the last minute.

Despite the restructuring, the ultimate shareholders would remain unchanged, with IMI owned by UAE vice-president Sheikh Mansour.

Ms Frazer issued an initial notice in November, triggering an investigation by watchdogs Ofcom and the Competition and Markets Authority.

But last night she said the last-minute nature of the proposed changes, unveiled this week, required a fresh notice. The deadline for the original one was extended from yesterday until the spring, when the CMA and Ofcom must also report back for the fresh probe. Ms Frazer will then decide whether to approve the proposed takeover or order a deeper ‘phase two’ investigation.

Telegraph Media Group and parent company Press Acquisitions Limited said yesterday that chief executive Nick Hugh had left the role immediately, to be replaced by Anna Jones.

She said: ‘TMG is a profitable and successful business with world class journalism at its heart and continuing to deliver on this is what will ensure our company continues to thrive.’

A RedBird IMI spokesman said the fund would maintain the editorial independence of the group to ‘protect its reputation, credibility and value.’