Pressure Mounts on UK Government to Hand Telegraph Sale to Independent Body

The government is facing growing calls to remove RedBird IMI from the sale of the Daily and Sunday Telegraph and hand the process to an independent authority, as peers warn the long-running saga is damaging the titles and public confidence.

During a House of Lords session on Wednesday, peers urged Culture Secretary Lisa Nandy to shift control of the auction to an impartial body such as the Competition and Markets Authority (CMA) or the Cabinet Office. The pressure follows the collapse of RedBird IMI’s takeover attempt after its US partner, RedBird Capital Partners, abruptly withdrew from the joint venture last week.

Lloyds’ takeover from the Barclay family has left the Telegraph on the market for more than two years.

Christopher Fox, the Liberal Democrat business spokesperson, argued that the Telegraph titles now need an “independent white knight” buyer and said parties involved in previous bids should be excluded from running the sale. He accused the Department for Culture, Media and Sport (DCMS) of mishandling the process and recommended it be handed to experts with experience in major media transactions.

Conservative peer Michael Forsyth echoed the calls, saying a CMA-run “proper auction” was needed to restore order to the sale, which has dragged on for more than two years.

Government Insists Sale Will Stay Under DCMS Control

Responding on behalf of the government, Labour minister Fiona Twycross acknowledged that the prolonged process had left staff in “limbo for too long.” However, she maintained that DCMS — and Nandy — would retain responsibility for the sale.

“The secretary of state has adhered to the letter of the law and diligently carried out her quasi-judicial responsibilities,” Twycross said. “Securing a swift outcome in the public interest is a priority.”

Nandy may yet refer RedBird IMI’s renewed bid to the CMA under the new Foreign State Influence regime, which allows regulators to assess whether foreign state-linked entities can legally own UK news organisations.

Foreign Ownership Rules Complicate the Sale

RedBird IMI — majority funded by Abu Dhabi’s Sheikh Mansour bin Zayed Al Nahyan — says it has only purchased an “economic interest” in the Telegraph and has no intention of influencing editorial control. But new UK legislation banning foreign-state ownership forced the company to put the titles back on the market, and it has since struggled to find a buyer willing to meet its £500m asking price.

Market analysts estimate the Telegraph titles are worth closer to £350m.

Forcing a sale at a significantly lower valuation could inflame tensions with the UAE and spark political fallout in Westminster. Legal experts say the government has the power to mandate a sale, but doing so may add bureaucracy and deepen RedBird IMI’s financial losses — making it an unattractive option.

New Auction Could Attract Old and New Bidders

RedBird Capital’s abandoned bid previously included small investments from the Daily Mail’s parent company DMGT and billionaire Sir Leonard Blavatnik. A fresh sale could reignite interest from investors such as GB News shareholder Sir Paul Marshall — who bought The Spectator in 2024 — and DMGT itself.

However, a DMGT takeover would trigger heavy regulatory scrutiny due to competition concerns, given the company already handles the Telegraph’s printing and advertising operations.

Lord Saatchi and Lynn Forester de Rothschild also made a £350m offer last year with performance-based payments, which RedBird IMI ultimately rejected.

For now, the government insists the process remains in its hands — but pressure from peers and the industry is intensifying as the future of one of Britain’s most influential newspapers remains unresolved.