James Warrington
Fri, 24 November 2023
Jeff Zucker
The US media executive fronting an Abu Dhabi takeover of The Telegraph has promised he will guarantee editorial independence, even as he accused rivals of “slinging mud” to derail the bid.
Jeff Zucker, the former CNN chief, has emerged as a frontrunner in the race with a swoop backed by Sheikh Mansour bin Zayed Al Nahyan, vice-president of the United Arab Emirates.
But the approach, which is funded through a £1.2bn debt deal with the Barclay family, has stoked concerns about the United Arab Emirates’ (UAE’s) record of censorship.
Mr Zucker said he would “make sure that [the Government] understand that we’re prepared to make commitments that should assuage anyone’s concerns”.
Sky News reported that the undertakings would be legally binding and would also apply to The Spectator magazine, which is also part of the planned deal.
However Mr Zucker also appeared to dismiss criticisms of the plans that have been published across Fleet Street. The plan has sparked anger among rival bidders, which include the Daily Mail publisher DMGT. Rupert Murdoch, owner of The Times, has been pursuing The Spectator.
Mr Zucker said: “There’s a reason that people are slinging mud and throwing darts – [it’s] because they want to own these assets. And they have their own media assets to try to hurt us.”
His pledges to guarantee editorial independence highlight efforts by RedBird IMI, the investment fund he leads, to calm mounting concerns over its interest in The Telegraph.
In addition to its non-democratic governance, the UAE has also come under criticism for its track record of media censorship.
Culture Secretary Lucy Frazer has said she is minded to issue a Public Interest Intervention Notice (PIIN), which would trigger regulatory scrutiny of the bid.
This would examine a review of accurate presentation of news and free expression of opinion would be maintained, as well as ensuring there is a plurality of views and owners in the media sector.
Lloyds Banking Group seized control of The Telegraph and The Spectator in June by sending in receivers after the Barclay family failed to repay debts.
Lloyds last month launched an auction run by Goldman Sachs. However, this has since been halted while the bank considers the complicated loan-based offer that would see the Barclay family repay its debt and ownership of The Telegraph immediately transferred to RedBird IMI.
US national security committee investigates Abu Dhabi investors
Michael Bow
Fri, 24 November 2023
Abu Dhabi
US national security officials are vetting a string of takeovers by Abu Dhabi investors over fears about its close ties to China.
The Committee on Foreign Investments in the United States (CFIUS), a secretive government group which scrutinises foreign takeovers of US companies, has ramped up the number of probes into Gulf sovereign funds in recent months.
Officials are concerned that takeovers of sensitive US assets from funds in the Gulf could harm national scrutiny because of China’s growing influence in the region. China and the UAE in particular have fostered much closer relations in recent months, spooking US officials.
Deals involving Abu Dhabi funds are particularly sensitive because national security and investment decisions are made by a small band of royals, Bloomberg reported.
Takeovers by groups including the Abu Dhabi Investment Authority and Mubadala Investment Company are reportedly at the centre of the investigations.
CFIUS is already scrutinising Mubadala’s proposed $3bn (£2.4bn) takeover of US asset manager Fortress Investment Group.
Washington’s growing scepticism of the UAE has been prompted by a surge of Gulf investment into China. The region has ploughed $2.3bn into the region so far this year, up from just $100m last year, according to figures from Global SWF, cementing the burgeoning relationship.
UAE’s relations with the Biden administration have also been frayed after US spies discovered China was secretly building a suspected military facility at a Abu Dhabi port. The plan was later abandoned after US pressure.
CFIUS has similar powers as the UK’s National Security and Investment Act. It can veto deals considered as a threat to national security.
President Biden last year ordered CFIUS to put a larger emphasis on scrutinising key technologies such as quantum computing and AI.
The Biden administration’s colder approach to UAE acquisitions stands in sharp contrast to previous UK investment policy.
The UK Office for Investment signed a deal with Mubadala Investment Company in 2021 pledging to attract £10bn of UAE investment into the UK until 2026.
Middle Eastern investors were among the most active investors globally last year, with ADIA splurging $26bn and Mubadala splashing out $11bn, according to Global SWF.
Mubadala owns UK companies such as smart metre maker Calisen, Cityfibre and software company Huboo.
The US Treasury, ADIA and Mubadala were contacted for comment.
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