UAE has ‘political motive’ to bid for Telegraph

Culture Secretary says Ofcom warns Redbird IMI’S involvement could ‘affect free expression’

THE United Arab Emirates has “clear political and broader commercial incentives to influence the editorial line” of The Telegraph, media regulator Ofcom has warned.

Lucy Frazer, The Culture Secretary said the regulator found that Redbird IMI, which is majority backed by UAE vice-president Sheikh Mansour, could look to exert influence over the newspaper’s output, particularly in matters relating to the Middle Eastern country.

In a letter to Redbird IMI, Ms Frazer said Ofcom had concluded that this influence could “negatively affect the accurate presentation of news and free expression of opinion”.

It came as the Government published an amendment to a bill that will block foreign governments from buying or investing in British newspapers.

Redbird IMI has previously said it would reconsider its pursuit of both The Telegraph and The Spectator once the new laws were published.

Ofcom highlighted concerns about the Abu Dhabi fund’s access to “vast economic resources” and the imbalance of financial contributions in the proposed deal. Uae-owned International Media Investments (IMI) is providing 75pc of the funding for the joint venture while Redbird Capital, a US private equity firm, is contributing a quarter. Ofcom said: “These factors alone could give IMI the ability to exercise influence over editorial decisions by TMG [Telegraph Media Group] so as to adversely impact the accuracy of news and free expression of opinion.”

The regulator also pointed to significant links between Redbird IMI and members of the UAE government.

Sultan Al-jaber, a UAE politician who is the minister of industry and chairman of the Abu Dhabi Investment Corporation, chairs both IMI and Redbird IMI. Rani Raad, the chief executive of IMI, is also an operating partner at Redbird Capital. Jeff Zucker, a former CNN chief, is fronting the Redbird IMI bid.

Ms Frazer said she had also considered Ofcom’s conclusions that there were “notable differences” between the motivations of a powerful private individual and those of a state. It said: “All else equal, a state or government owning, or holding a majority interest in, a newspaper would put it in a position to use its influence on that paper to further its foreign policy, commercial, reputational, or other ambitions.” Redbird IMI has been contacted for comment. ♦ The owner of The Scotsman and The Yorkshire Post has said it is the “best qualified” buyer for The Telegraph, even as it revealed plans to rely on artificial intelligence to produce its newspapers.

National World, which has a stock market valuation of only £36m, last year became the first suitor to publicly declare an interest in buying The Telegraph after Lloyds Banking Group seized the newspaper and prepared an auction.