Former chancellor Zahawi mulling bid for the Telegraph

Nadhim Zahawi, the former chancellor of the UK, is reportedly considering making a bid to purchase the Telegraph newspapers and the Spectator Magazine. This comes after he stepped down as a Conservative Member of Parliament following the recent general election earlier this month. According to sources familiar with the situation, Mr. Zahawi is actively seeking financial support to facilitate his potential acquisition of these prominent publications. Earlier this year, the Telegraph and the Spectator were put back on the market after a previous bid backed by Abu Dhabi fell apart. This deal, which was estimated to be worth around £600 million, would have transferred ownership of the newspapers to a consortium known as Redbird IMI, which is supported by Gulf funding. However, the UK government intervened in January, introducing new legislation that prohibits foreign states from owning newspapers in the UK, which ultimately halted the deal. The first phase of the auction for the Telegraph and Spectator concluded last Friday, and it is reported that up to 20 bidders expressed interest in acquiring one or both of the publications. These bidders included private equity firms, international investment houses, and individual billionaires. The auction process is expected to move into a second stage in the coming weeks. Sky News, which was the first to report on Mr. Zahawi's interest in the publications, indicated that he has reached out to several potential financial backers to support his bid. Additionally, he is said to be in discussions with IMI, the Abu Dhabi-based company that controls Redbird IMI and holds significant debt related to the two titles. The BBC has sought comments from Mr. Zahawi, while IMI has chosen not to provide any statements. Among the other interested bidders are Rupert Murdoch’s News UK and Sir Paul Marshall, the owner of GB News. However, the owners of the Daily Mail, DMGT, withdrew from the auction last week, citing concerns about facing a lengthy regulatory process if they were to win the auction, especially with the recent election of a new Labour government. The Telegraph and the Spectator, both known for their right-leaning editorial stance, were put up for sale last year after being seized by Lloyds Banking Group from the Barclay family, who had defaulted on a loan exceeding £1 billion. Before the auction could be finalized, the Barclay family managed to pay off their debt with funds provided by Sheikh Mansour bin Zayed bin Sultan al-Nahyan, who is the owner of Manchester City football club and a high-ranking official in the UAE. In exchange for settling their debt, the Barclays agreed to transfer ownership of the newspapers to the Gulf-backed consortium. Many Conservative politicians and senior journalists associated with the publications expressed serious concerns about the potential sale to what they perceived as a foreign entity. Following the government intervention and the introduction of new legislation, the bid was effectively stalled. It is believed that Nadhim Zahawi played a role in brokering that deal and is now eager to pursue his own bid for the newspapers. Mr. Zahawi served as the education secretary from September 2021 to July 2022 and briefly held the position of Chancellor of the Exchequer between July and September 2022. He was dismissed as the chairman of the Tory Party in January of last year after an inquiry revealed that he had violated the ministerial code by failing to disclose that he was under investigation by HMRC regarding his tax affairs.