Telegraph takeover funding is now under scrutiny as MPs raise national security concerns. A cross-party group has urged ministers to investigate the £500 million deal involving RedBird Capital. The group fears the potential for Chinese and Emirati influence in British media.
Last week, the MPs sent a letter to Culture Secretary Lisa Nandy. In it, they demanded a transparent review of the funding behind the Telegraph acquisition. They pointed to RedBird Capital’s chairman John Thornton’s ties to China. Thornton recently met senior Chinese Communist Party officials and advised China’s sovereign wealth fund.
RedBird Capital announced its intention to buy the Daily and Sunday Telegraph last month. The MPs claim the funding sources remain unclear and pose possible risks. They warned that foreign state actors, including China, could be involved directly or indirectly.
The letter’s signatories include senior Conservatives Iain Duncan Smith and Tom Tugendhat. Labour MPs Alex Sobel and Marie Rimmer also backed the inquiry. So did Liberal Democrat Christine Jardine and SNP MP Chris Law. Peers from across the political spectrum added their support as well.
They requested a full investigation and a national security review of the Telegraph takeover funding. They also questioned Thornton’s suitability to control a UK media outlet. As of now, the Department for Culture, Media and Sport has not received a formal proposal.
RedBird insists the deal is fully funded and does not depend on outside investors. However, the source of the funding remains a central issue for concerned MPs. Still, questions persist due to Thornton’s links and past associations.
Previously, RedBird IMI partly owned by UAE’s Sheikh Mansour took temporary control of the Telegraph. Mansour, also the owner of Manchester City, funded most of that earlier deal through International Media Investments. The UK government later blocked foreign state control of newspapers, forcing a sale.
Under the new rules, foreign ownership will be capped at 15 percent. RedBird Capital claims its deal will comply with the new limits. Yet MPs argue that the Telegraph takeover funding process undermines the spirit of the legislation. They believe all investors should disclose before approval.
The growing pressure now puts the culture secretary in a difficult position. Calls for transparency and national interest dominate the discussion. The future of one of Britain’s leading newspapers hangs in the balance as scrutiny intensifies.
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