Telegraph bidder reported for potential breach of editorial independence rules | Telegraph Media Group

The boss of the US private equity group bidding for the Daily Telegraph has been reported to the UK government for potentially breaching rules protecting the newspaper’s editorial independence after he allegedly threatened to “go to war” with the newspaper’s newsroom.

The Guardian understands that independent directors at Telegraph Media Group (TMG) have alerted the Department for Culture, Media and Sport (DCMS) over alleged comments made by RedBird Capital’s Gerry Cardinale to Telegraph editor Chris Evans. It is thought that the government department will assess whether there has been a breach of the legislation.

Charles Moore, the title’s former editor, revealed in his Telegraph column last month that Cardinale was prompted by the paper’s journalists’ investigations into RedBird Capital’s offer. “He threatened to go to war with our entire newsroom.”.

Moore added that there had been “obvious media briefings” that Evans would be sacked and replaced as editor; but this was followed by a column published by Cardinale in the Telegraph last week.

The private equity boss said: “We will never compromise. The Telegraph’s editorial independence. At RedBird, we are very clear on one basic proposition: If you want to impress a newspaper, don’t invest in it; “This undermines the investment thesis and is just bad business.”

Last year the government launched an application. legal document compelling parties “To take all reasonable steps to protect key personnel within the Telegraph Media Group business and to ensure that no key personnel are removed from their duties.”

The order added: “Acquirers must always keep the secretary of state informed of any material developments relating to Telegraph Media Group business, including details of key personnel leaving or joining the Telegraph Media Group business.”

The referral to the culture department follows an eventful few weeks in the Telegraph takeover saga, which has come under scrutiny because the initial purchase was funded by foreign state interests. Last week the paper linked its presumed new owner to the suspected ringleader of a Chinese spy ring in Westminster.

The Telegraph’s future has been uncertain since the Barclay family lost control of the media group due to unpaid debts in 2023. An entity called Redbird IMI, affiliated with Redbird Capital, took control of the newspaper titles later that year.

But RedBird IMI was forced to put the documents up for sale in spring 2024 after the then Conservative government passed a law preventing foreign governments or affiliates from owning newspaper assets in the UK. Redbird IMI is in the process of selling TMG to RedBird Capital, which holds various investments including shares in the parent company of Liverpool football club.

A quarter of RedBird IMI’s funding came from RedBird Capital, while the rest came from International Media Investments (IMI), controlled by Abu Dhabi’s Sheikh Mansour bin Zayed al-Nahyan, vice-president of the United Arab Emirates and owner of Manchester City FC.

The Labor government this year eased the ban on foreign governments owning shares in UK newspapers, allowing foreign governments to own up to 15% of newspapers, ultimately allowing the RedBird Capital bid to include IMI retaining 15% of Telegraph shares.

A spokesman for DCMS and TMG executives declined to comment on the Telegraph executives’ report to DCMS.

A spokesman for RedBird Capital said: “RedBird is a private equity fund, it does not own it, and the fund’s remit is to increase the value of its investments. “The way to increase the value of the Telegraph is to increase subscribers, and the way to do this is to embrace and support the values ​​that matter most to subscribers: freedom of expression and independent journalism.

“That’s why we’ve committed to establishing an independent advisory board charged with upholding the highest standards of journalistic integrity. Lord Black, deputy chairman of Telegraph Media Group, has agreed to design the framework for this.”