Figures involved in a rival bid for the Telegraph are considering legal action against the UK government after ministers allowed Daily Mail and General Trust (DMGT) to take a step towards its £500m takeover. The rival group, led by New York Sun owner Dovid Efune, is examining a potential judicial review of the decision by Culture Secretary Lisa Nandy to lift restrictions on DMGT acquiring the option to buy the Telegraph titles.
The Telegraph has been in limbo for three years since the Barclay family lost control due to unpaid debts. The option to buy is currently held by RedBird IMI, an Abu Dhabi-backed venture forced to sell after a law change preventing overseas state ownership of newspapers. Critics fear the decision prejudices ongoing regulatory investigations into the deal's impact on media plurality and competition.
Concerns also exist that if DMGT's bid is blocked, holding the option would effectively give it control over which rival bids are accepted. DMGT struck a deal in November to buy the Telegraph, entering exclusivity with RedBird IMI. The group plans to finance the £500m deal through borrowing, a price seen as high but demanded by RedBird IMI to recoup its costs.
Last week, Axel Springer, owner of Politico and Bild, joined Efune's consortium, which also includes Baltimore Sun owner David D Smith and British investor Jeremy Hosking. Nandy has raised concerns about further consolidation of right-leaning titles, though DMGT disputes this characterisation. Ofcom will examine the deal's impact on media plurality. The Department for Digital, Culture, Media and Sport and DMGT declined to comment.
