RedBird Pulls Out of Telegraph Takeover Amid China Link Concerns

The US private equity firm RedBird Capital Partners has pulled out of its bid for control of the Telegraph amid concerns over foreign state control and links to China. The Telegraph has the story.

The decision comes with RedBird and its partner IMI, a media company owned by the United Arab Emirates, lined up to face investigations of their plans for the Telegraph by regulators.

Lisa Nandy, the Culture Secretary, has been considering whether to refer their consortium, which also includes the Daily Mail owner Lord Rothermere and the billionaire industrialist Sir Leonard Blavatnik, to Ofcom and the Competition and Markets Authority.

The £500 million bid has come under fire over the role of IMI, which was preparing to take a 15% passive stake.

A previous Telegraph takeover attempt by RedBird and IMI was blocked in spring last year following a cross-party outcry over press freedom.

They returned with a reconfigured bid but were still expected to face investigations over its impact on the public interests in free expression and accurate news, as well as scrutiny under a new regime to assess the threat of foreign state influence on a newspaper.

The long-running battle has caused tensions between the UK and the UAE, a key investment and intelligence partner in the Middle East. Sir Keir Starmer spoke to the Gulf state’s ruler Sheikh Mohamed bin Zayed Al Nahyan on Monday.

According to Downing Street, the Prime Minister highlighted “the value of a closer relationship between the UK and the UAE, with co-operation across issues like security, defence, economy, trade and cultural ties delivering benefits for both countries”. …

RedBird, which owns AC Milan and is the second biggest investor in the Hollywood studio Paramount, said it submitted details of its bid to Ms Nandy’s department early last month. It pledged to protect editorial independence by establishing an advisory board.

As well as concerns over the UAE’s involvement, RedBird’s Chinese links have also faced criticism. The firm’s Chairman, John Thornton, a former Goldman Sachs banker, has multiple ties to the Chinese Communist Party, triggering alarm from human rights campaigners. …

The free speech campaigner Lord Young said: “This is welcome news. Foreign states should not be able to influence British newspapers and the Chinese links in the bid were seriously concerning.

“It’s imperative that after so long in limbo, the Telegraph is now sold in a transparent way at a price determined by the market, i.e., an auction overseen by the Competition and Markets Authority. That’s a process that should be independent of RedBird and IMI.”

Worth reading in full.

Stop Press: Culture Secretary Lisa Nandy personally intervened to kibosh the takeover, according to the New World. Apparently, RedBird was all set to finally buy the title until Nandy said it would need to go through a public inquiry. Is Paul Marshall, who recently bought the Spectator, waiting in the wings?