UK government considers changes to law to block Telegraph bid

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Rishi Sunak is considering introducing new powers to allow ministers to prevent a foreign state from owning a British news organisation, as pressure mounts from within the ruling Conservative party to block the takeover of the Telegraph Media Group by Abu Dhabi-backed RedBird IMI.

The British prime minister is exploring the possibility of amending existing legislation, such as the Enterprise Act, to give the government the power to step in, according to several people close to the situation.

Downing Street is under increasing pressure from Conservative backbenchers to intervene in the £600mn bid by Redbird IMI for the owner of the Daily Telegraph, given the close links between the newspaper and the ruling party.

The latest move by Number 10 comes after Conservative peer Baroness Tina Stowell, introduced an amendment to the Digital Markets bill, which is currently going through parliament, to give the government powers to veto a foreign state buying a British news organisation.

The measure will be voted on in the House of Lords on Wednesday and if passed, the bill would then go back to the Commons, where it already has the backing of more than 100 MPs.

The government is in talks with Stowell about dropping her amendment if it comes up with an alternative proposal in time. Downing Street and Stowell declined to comment.

The possible intervention by Sunak comes as the two regulators scrutinising the deal for the Telegraph submitted their initial findings to culture secretary Lucy Frazer about the proposed takeover on Monday.

The recommendations by media watchdog Ofcom and the Competition and Markets Authority will remain confidential until Frazer has decided whether to allow the deal to proceed or refer it to the competition watchdog for in-depth scrutiny — a probe that could take months.

Many MPs and media analysts expect Frazer to request a second phase inquiry…