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Rishi Sunak will attempt to block the takeover of the Telegraph by Abu Dhabi-backed RedBird IMI by changing the law to stop a foreign state buying a British news organisation.
The UK prime minister will make changes to legislation currently going through parliament to in effect prevent any foreign state from owning or having influence or control over a British newspaper.
The plan will be set out in parliament on Wednesday afternoon, according to two people familiar with the matter.
Any deal involving a foreign state would be vetted by the Competition and Markets Authority, and then blocked if the regulator found that the country would have influence or control over a British media group.
The legislative change means that the deal to buy the Telegraph by RedBird IMI would probably be blocked as it stands, according to people close to the deal, since Abu Dhabi has provided about three quarters of Redbird IMI’s cash. RedBird IMI declined to comment.
Downing Street has faced pressure from Conservative MPs to block the £600mn takeover of Telegraph Media Group by RedBird IMI. The deal includes the Spectator magazine.
The amendment to the Enterprise Act would be voted on at the next reading of digital markets, competition and consumers bill, which would mean that it could be passed within weeks.
A low threshold is expected to be set to allow small passive stakes, such as those typically held by the Norwegian sovereign wealth fund, according to a person close to the situation.
This is a developing story