The Culture Secretary was last night poised to restart the clock on scrutiny of a UAE-backed bid to buy The Daily Telegraph.
Lucy Frazer is likely to delay the bid process after asking for submissions by 9am today regarding a restructure by bidders RedBird IMI.
The Abu Dhabi-backed investors had tried to respond to criticisms that a foreign government would own the newspaper, risking freedom of speech, by setting up a UK-based holding company.
But this has risked derailing the takeover. Scrutiny by two watchdogs was due to end this week, but now a new process has been triggered.
In a letter, Ms Frazer said she ‘remains concerned’ over the deal.
Lucy Frazer (pictured) is likely to delay the bid process after asking for submissions by 9am today regarding a restructure by bidders RedBird IMI
The Abu Dhabi-backed investors had tried to respond to criticisms that a foreign government would own the newspaper, risking freedom of speech, by setting up a UK-based holding company
RedBird IMI was told by the Department for Culture, Media and Sport yesterday: ‘We note the very late stage at which information about this new corporate structure has been shared and implemented.
‘We do not consider this conducive to the full and proper functioning of the process.’
Despite the restructuring, the ultimate shareholders would remain unchanged, with IMI ‘privately owned by a member of the UAE government’.
The DCMS said: ‘The Secretary of State therefore remains concerned about the potential influence of International Media Investments (IMI) over TMG (Telegraph Media Group).’
The letter concluded that Ms Frazer will make a final decision on whether to issue a new Public Interest Intervention Notice (PIIN).
A RedBird IMI spokesman said: ‘This change was made in order to clarify the point that IMI is a passive investor.’