I wish to update the House on the sale of the Telegraph Media Group, following the recent withdrawal of the Redbird Capital Partners-led bid to acquire the title, and the news announced on Saturday 22 November that RedBird IMI has signed an agreement with DMGT, entering into a period of...

I wish to update the House on the sale of the Telegraph Media Group, following the recent withdrawal of the Redbird Capital Partners-led bid to acquire the title, and the news announced on Saturday 22 November that RedBird IMI has signed an agreement with DMGT, entering into a period of...

I am repeating the following Written Ministerial Statement made today in the other place by my Right Honourable Friend, the Secretary of State for Culture, Media and Sport, Lisa Nandy MP:

I wish to update the House on the sale of the Telegraph Media Group, following the recent withdrawal of the...

I am repeating the following Written Ministerial Statement made today in the other place by my Right Honourable Friend, the Secretary of State for Culture, Media and Sport, Lisa Nandy MP:

I wish to update the House on the sale of the Telegraph Media Group, following the recent withdrawal of the...

My Lords, the Secretary of State and I are acutely aware that the Telegraph and those who work there have been in limbo for too long. We are keen for this to be resolved as soon as possible in the public interest. The Secretary of State has now received a formal withdrawal of RedBird IMI’s request to progress the sale of the call option to RedBird Capital Partners. I am sure the noble Lord will understand that I cannot provide a running commentary or go into detail on this commercially sensitive live case. The Secretary of State will update Parliament when regulatory decisions are made.

My Lords, the Secretary of State and I are acutely aware that the Telegraph and those who work there have been in limbo for too long. We are keen for this to be resolved as soon as possible in the public interest. The Secretary of State has now received a formal withdrawal of RedBird IMI’s request to progress the sale of the call option to RedBird Capital Partners. I am sure the noble Lord will understand that I cannot provide a running commentary or go into detail on this commercially sensitive live case. The Secretary of State will update Parliament when regulatory decisions are made.

I thank the Minister for that Answer. When the Government hastily tabled the statutory instrument that was specifically designed to allow RedBird to make its acquisition, it was crystal clear to many of us that the deal was wrong. Now the financial wreckage left behind by RedBird’s exit is very complex. For example, some reports suggest that Abu Dhabi-based International Media Investments could retain huge residual interest in the Telegraph and, depending on the final price of any sale, that could be well more than 15%. The Telegraph Media Group clearly needs a white knight acquirer, but to ensure the best interest does the Minister agree that none of the players involved in the deals to date should be driving the sale process? Does she also concede that, given DCMS’s failure to read the financial room, it too should stand aside in favour of the Cabinet Office or perhaps an external adviser experienced in dealing with these kinds of complex issues?

I thank the Minister for that Answer. When the Government hastily tabled the statutory instrument that was specifically designed to allow RedBird to make its acquisition, it was crystal clear to many of us that the deal was wrong. Now the financial wreckage left behind by RedBird’s exit is very complex. For example, some reports suggest that Abu Dhabi-based International Media Investments could retain huge residual interest in the Telegraph and, depending on the final price of any sale, that could be well more than 15%. The Telegraph Media Group clearly needs a white knight acquirer, but to ensure the best interest does the Minister agree that none of the players involved in the deals to date should be driving the sale process? Does she also concede that, given DCMS’s failure to read the financial room, it too should stand aside in favour of the Cabinet Office or perhaps an external adviser experienced in dealing with these kinds of complex issues?

The Secretary of State has adhered to the letter of the law and diligently carried out her quasi-judicial responsibilities. There is no basis to the suggestion that the decision should be made elsewhere. Securing a swift outcome in the public interest is a priority for her, and she will continue to act within the bounds of the regulatory framework as set out in the Enterprise Act 2002. Noble Lords wanted powerful legislation to prevent foreign states from owning a stake in our newspapers and rightly so. Now we must allow for resolution to be sought to secure stability for the Telegraph.

The Secretary of State has adhered to the letter of the law and diligently carried out her quasi-judicial responsibilities. There is no basis to the suggestion that the decision should be made elsewhere. Securing a swift outcome in the public interest is a priority for her, and she will continue to act within the bounds of the regulatory framework as set out in the Enterprise Act 2002. Noble Lords wanted powerful legislation to prevent foreign states from owning a stake in our newspapers and rightly so. Now we must allow for resolution to be sought to secure stability for the Telegraph.

My Lords, it is 18 months since this House effectively forced RedBird IMI to sell the Telegraph. It is more than unacceptable that the Telegraph’s ownership remains unresolved. Can the Minister confirm that IMI, the Emirati fund, cannot transfer any debt on to the Telegraph that it incurred from paying an inflated £500 million for the business and that such a poison pill would breach all legal limits on foreign state investment funds as well as the law preventing foreign states from owning, controlling or influencing a British newspaper?

My Lords, it is 18 months since this House effectively forced RedBird IMI to sell the Telegraph. It is more than unacceptable that the Telegraph’s ownership remains unresolved. Can the Minister confirm that IMI, the Emirati fund, cannot transfer any debt on to the Telegraph that it incurred from paying an inflated £500 million for the business and that such a poison pill would breach all legal limits on foreign state investment funds as well as the law preventing foreign states from owning, controlling or influencing a British newspaper?

The parties have given public assurances that this is not how the deal has been structured, which the Secretary of State was pleased to see, and I hope gives reassurance to the noble Baroness. They stated:

“The structure of the transaction has always been that upon any sale, the security and guarantees granted by the Telegraph companies in respect of the Redbird IMI loan will be fully extinguished and discharged. Further, the Telegraph would not assume any debt owed by the Barclay family”.

On that basis, it is not my current understanding that the Telegraph would be responsible for the debt. I hope that gives the noble Baroness the reassurances she requires.

The parties have given public assurances that this is not how the deal has been structured, which the Secretary of State was pleased to see, and I hope gives reassurance to the noble Baroness. They stated:

“The structure of the transaction has always been that upon any sale, the security and guarantees granted by the Telegraph companies in respect of the Redbird IMI loan will be fully extinguished and discharged. Further, the Telegraph would not assume any debt owed by the Barclay family”.

On that basis, it is not my current understanding that the Telegraph would be responsible for the debt. I hope that gives the noble Baroness the reassurances she requires.

My Lords, has this uncertainty for the staff and for a great national newspaper not gone on long enough? Should the Secretary of State not use her powers to get the Competition and Markets Authority to put this on a block so that there is a proper option and normal order can be restored?

My Lords, has this uncertainty for the staff and for a great national newspaper not gone on long enough? Should the Secretary of State not use her powers to get the Competition and Markets Authority to put this on a block so that there is a proper option and normal order can be restored?

It would be inappropriate for me to speculate on the potential approaches that might be taken at this stage, although I and the Secretary of State are keenly aware that the sale process has taken too long. We are clear about the negative impact of this uncertainty, not least on the Telegraph staff. For this reason, the Secretary of State will be moving this forward as a priority. However, the need for decisive action cannot overshadow the need for thorough and diligent consideration of the approach which will deliver the best outcome.

It would be inappropriate for me to speculate on the potential approaches that might be taken at this stage, although I and the Secretary of State are keenly aware that the sale process has taken too long. We are clear about the negative impact of this uncertainty, not least on the Telegraph staff. For this reason, the Secretary of State will be moving this forward as a priority. However, the need for decisive action cannot overshadow the need for thorough and diligent consideration of the approach which will deliver the best outcome.

Has the Secretary of State thought about approaching the mutual world? It is highly successful in the United Kingdom at the moment, both in the financial dimension and across a whole spectrum of activity.

Has the Secretary of State thought about approaching the mutual world? It is highly successful in the United Kingdom at the moment, both in the financial dimension and across a whole spectrum of activity.

I am not privy to the Secretary of State’s thinking on this matter, but I will pass on the noble Lord’s suggestion.

I am not privy to the Secretary of State’s thinking on this matter, but I will pass on the noble Lord’s suggestion.

My Lords, I declare an interest as a Telegraph contributor and as the director of the Free Speech Union. Can the Minister assure the House that, in keeping with the principle that foreign states should not be able to exercise any influence over the editorial content of a British newspaper, foreign states should not be able to exercise any influence over the sale of a British newspaper either? To repeat the request of the noble Lord, Lord Fox, assuming that

the Minister agrees with that principle, will she ask the Secretary of State to guarantee that RedBird IMI is not involved in the decision regarding to whom the Telegraph is sold?

My Lords, I declare an interest as a Telegraph contributor and as the director of the Free Speech Union. Can the Minister assure the House that, in keeping with the principle that foreign states should not be able to exercise any influence over the editorial content of a British newspaper, foreign states should not be able to exercise any influence over the sale of a British newspaper either? To repeat the request of the noble Lord, Lord Fox, assuming that

the Minister agrees with that principle, will she ask the Secretary of State to guarantee that RedBird IMI is not involved in the decision regarding to whom the Telegraph is sold?

As I have said previously, it would be inappropriate for me to comment on any live merger case. I agree with all noble Lords who have stated their support for the Telegraph, which is a world-renowned title, with a long and proud history that we want to see continue. The public interest intervention notice and pre-emptive action order on RedBird IMI’s proposed acquisition of the Telegraph both remain in place. As I have stated previously, the Secretary of State is keen to make sure that the matter is resolved, as she agrees, as I am sure do noble Lords from across the House, that the sale process is taking too long.

As I have said previously, it would be inappropriate for me to comment on any live merger case. I agree with all noble Lords who have stated their support for the Telegraph, which is a world-renowned title, with a long and proud history that we want to see continue. The public interest intervention notice and pre-emptive action order on RedBird IMI’s proposed acquisition of the Telegraph both remain in place. As I have stated previously, the Secretary of State is keen to make sure that the matter is resolved, as she agrees, as I am sure do noble Lords from across the House, that the sale process is taking too long.

My Lords, I welcome the Minister’s understanding of the limbo in which this leaves the Telegraph’s journalists and readers. We all understand that there are commercial sensitivities and quasi-judicial processes that have to be respected here, but these add to the sense of frustration that is experienced by potential buyers, vendors, Parliament and the public alike. Do the Government have any plans, when this is finally resolved, to look again at the Enterprise Act regime that governs it, to ensure that we have protections in place for our media, but also so that we can send a clear signal that the UK is open to investment from potential businesses?

My Lords, I welcome the Minister’s understanding of the limbo in which this leaves the Telegraph’s journalists and readers. We all understand that there are commercial sensitivities and quasi-judicial processes that have to be respected here, but these add to the sense of frustration that is experienced by potential buyers, vendors, Parliament and the public alike. Do the Government have any plans, when this is finally resolved, to look again at the Enterprise Act regime that governs it, to ensure that we have protections in place for our media, but also so that we can send a clear signal that the UK is open to investment from potential businesses?

The UK is most certainly open for investment. It is probably premature for me to do a review of a sale that has not yet taken place, but I assure your Lordships’ House that any lessons that can be learned from what has happened over the past year or so will be.

The UK is most certainly open for investment. It is probably premature for me to do a review of a sale that has not yet taken place, but I assure your Lordships’ House that any lessons that can be learned from what has happened over the past year or so will be.

My Lords, in response to the noble Lord, Lord Parkinson, the Minister said that it was premature to look into this unless and until the sale took place. Surely part of this sorry story—the “will she, won’t she?”—relates to the pre-sale process, and that is something that should be looked at just as much as what has happened after any hypothetical sale that may or may not occur.

My Lords, in response to the noble Lord, Lord Parkinson, the Minister said that it was premature to look into this unless and until the sale took place. Surely part of this sorry story—the “will she, won’t she?”—relates to the pre-sale process, and that is something that should be looked at just as much as what has happened after any hypothetical sale that may or may not occur.

The noble Lord makes a fair comment, and I will pass on his comments to the Secretary of State.

The noble Lord makes a fair comment, and I will pass on his comments to the Secretary of State.

My Lords, can the Minister explain some contradictions here? On the one hand, the Government are quite keen that a foreign Government should not own a UK newspaper, while being simultaneously content for foreign Governments, including dictatorships, to own UK water, energy, rail, ports, airports, oil, gas, hospitals, care homes, GP surgeries and more. Why this hypocrisy about foreign Governments that is just applicable to newspapers?

My Lords, can the Minister explain some contradictions here? On the one hand, the Government are quite keen that a foreign Government should not own a UK newspaper, while being simultaneously content for foreign Governments, including dictatorships, to own UK water, energy, rail, ports, airports, oil, gas, hospitals, care homes, GP surgeries and more. Why this hypocrisy about foreign Governments that is just applicable to newspapers?

My noble friend is allowing me to explain why we want a pluralistic free press. It is fundamental to our democracy. I think that there is a

difference between foreign investment in other parts of the UK economy, including utilities, and the free press that is a fundamental cornerstone of our democracy, and which we want to continue without foreign state interference.

My noble friend is allowing me to explain why we want a pluralistic free press. It is fundamental to our democracy. I think that there is a

difference between foreign investment in other parts of the UK economy, including utilities, and the free press that is a fundamental cornerstone of our democracy, and which we want to continue without foreign state interference.

My Lords, the Government are actively concerned about balance in the broadcast media. Are they also concerned about the maintenance of balance in the written media?

My Lords, the Government are actively concerned about balance in the broadcast media. Are they also concerned about the maintenance of balance in the written media?