Former Tory minister Neil O’Brien urges UK to emulate America’s ‘robust’ probe into Abu Dhabi wealth fund

•  Ministers urged to scrutinise RedBird IMI as US investigate hedge fund takeover

A US probe into a £2.3 billion deal involving an Abu Dhabi wealth fund last night sparked calls for the UK to hold a similar investigation into a bid to seize control of the Telegraph.

Mubadala Investment Company, whose chairman is Sheikh Mansour, the deputy prime minister of the United Arab Emirates and owner of Manchester City FC, is trying to buy a majority stake in Fortress Investment Group, a huge New York hedge fund.

The deal is, however, reportedly being put under the microscope by the powerful Committee on Foreign Investment in the United States, which vets whether deals can harm national security.

Now pressure is mounting on UK Government Ministers to adopt a similarly ‘robust’ stance and order an investigation into a bid by RedBird IMI, an Abu Dhabi-backed fund, to take over the Telegraph newspapers and Spectator magazine.

Former Tory Government Minister Neil O’Brien said: ‘The Telegraph and Spectator are important UK institutions and they shouldn’t be allowed to come under the control of a foreign government without scrutiny and discussion.

Former Tory minister Neil O’Brien has said that the Telegraph should not be allowed to come under the control of a foreign government without scrutiny

The US committee’s scrutiny of the planned takeover comes amid concerns that important US assets acquired by the UAE, which includes Abu Dhabi, could end up under Chinese influence

‘The fact the US is investigating a similar issue just shows why we should too. The US is taking a robust view of their national interest and it’s essential that we do too.’

The US committee’s scrutiny comes amid concerns that important US assets acquired by the UAE, which includes Abu Dhabi, could end up under Chinese influence.

Mubadala, Abu Dhabi’s second biggest wealth fund, is increasing its investments in China and opened an office in Beijing earlier this year. The Gulf region has ploughed £1.8 billion into China so far this year, up from just £79 million last year. Mubadala is attempting to acquire a majority stake in Fortress from SoftBank Group of Japan.

It comes amid deepening concern in the UK about the Emiratis taking a controlling interest in the Telegraph. Culture Secretary Lucy Frazer says she is ‘minded’ to issue a ‘Public Interest Intervention Notice’, which could lead to an investigation by regulators.

But Downing Street has not denied reports that the Foreign Office stepped in to ‘soften’ her language to avoid offending RedBird IMI.

Culture Secretary Lucy Frazer says she is ‘minded’ to issue a ‘Public Interest Intervention Notice’, which could lead to an investigation by regulators

Fortress was linked to more than 160 UK regional newspapers through a tie-up with their owner, the American publisher Gannett.

Following a merger in 2019, an affiliate of Fortress managed Gannett, which, via its UK subsidiary Newsquest, owns newspapers including the Glasgow Herald, the Northern Echo and Brighton Argus. The arrangement ended in late 2020.

Redbird IMI has said that if it gains ownership of the Telegraph and Spectator it is committed to maintaining their existing editorial teams, and ‘editorial independence for the titles is essential to protecting their reputation and credibility’.

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