Controversial UAE-funded Telegraph bid called in for government security review following backlash

• An ex minister told the Mail the bid should be ‘looked into on security grounds’

The controversial UAE-funded takeover of the Daily Telegraph has been called in for a Government security review.

Officials from the Investment Security Unit within the Cabinet Office have been scrutinising the bid behind the scenes.

It comes after ministers were warned by senior figures including former Tory leader Lord Hague and ex-spy chief Sir Richard Dearlove to consider the risks of allowing the UAE-backed RedBird IMI to buy the newspaper.

Former minister Neil O’Brien told the Mail the bid should be ‘looked into on security grounds’.

He said: ‘There’s a wider question here about other states owning our national media.

‘There would be a huge issue if the French government wanted to do it. But for a country that isn’t a democracy and doesn’t have our standards of free speech, it raises massive questions.’

Ministers were warned by senior figures including former Tory leader Lord Hague and ex-spy chief Sir Richard Dearlove to consider the risks of allowing RedBird IMI to buy the newspaper

The offices of the Telegraph Media Group in central London

Although the Government has not publicly stated that the bid is being scrutinised on security grounds, a minister assured peers this week that it had the power to do so.

Lord Parkinson of Whitley Bay said in a debate: ‘The Government has tough powers to address foreign interference and to scrutinise, and, if necessary, intervene in acquisitions on grounds of national security.’

It is not known if the Investment Security Unit is carrying out a full formal investigation. Under the National Security and Investment Act, the Government is not obliged to publicly announce when a call-in notice is issued.

Sources said the Government welcomes foreign investment when it supports jobs and meets legal requirements, but will not hesitate to protect national security.

The takeover attempt by RedBird IMI – a joint venture between a US private equity firm and a fund controlled by UAE vice-president Sheikh Mansour – is also being considered by media watchdog Ofcom.

A spokesman for RedBird IMI declined to comment and the Cabinet Office said it could not comment on security matters.

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