Former cabinet minister Zahawi pulls out of ‘British bid' for The Telegraph
The decision on Saturday leaves Mr Efune with an even steeper challenge as he attempts to gatecrash the planned takeover by the US private equity firm RedBird Capital.
Mr Zahawi, his family and friends accounted for £60m of the £170m of equity it is understood had been committed to the bid.
Even before losing the support, the consortium may have needed to raise a further £200m from shareholders to deliver the £550m bid he made alongside Mr Zahawi and the hedge fund manager Jeremy Hosking.
Mr Efune has planned to complete the offer with borrowing against The Telegraph's profits.
The approach has been rejected by IMI, the United Arab Emirates state media company. It is selling The Telegraph after its own attempt to take control was blocked last year following an outcry over press freedom.
That bid was made by a joint venture, RedBird IMI, in which RedBird was the junior partner having provided 25pc of the funding. Now the US private equity firm led by its founder Gerry Cardinale is in line to become the controlling shareholder in The Telegraph in a £500m deal.
He has signalled ambitious growth and investment plans to deliver a 'global counterpunch to The New York Times' from the centre-Right of the political spectrum.
Mr Cardinale is also in talks with at least three potential British minority co-investors, who include the owner of The Daily Mail, Lord Rothermere. After a proposed easing of the outright ban on foreign state shareholdings in newspapers, IMI is expected to retain a passive stake of up to 15pc.
With longstanding business and political links to the UAE, it is understood that Mr Zahawi pulled out after becoming concerned at Mr Efune's handling of the bid.
In recent days the publisher of the New York Sun website has sought to cast his approach as more British than RedBird's and sought to cast doubt on its sources of funding and ability to run The Telegraph successfully.
IMI has come out in public support of Mr Cardinale's bid, however, and it has been unclear how Mr Efune expects to disrupt their agreement in principle. Mr Cardinale has said none of RedBird's funding for the deal is drawn from sovereign wealth.
Mr Zahawi, who was Covid vaccines minister and briefly Chancellor, has played a significant role in the two-year saga over the ownership of The Telegraph.
A friend of both the Barclay family, the previous owners, and senior figures in the UAE, he was part of setting up a complex debt repayment deal that was intended to deliver the company into the hands of RedBird IMI. It included a £600m linked to the Barclay family's online shopping business Very, which saw Mr Zahawi become chairman.
Despite the failure of RedBird IMI's takeover of The Telegraph, he has persistently sought a role in its future. In recent months he has sought to put together a new bid that would help the UAE recoup its outlay.
It is understood Mr Cardinale does not intend to involve Mr Zahawi.
Mr Efune was unavailable for comment. In his most recent statements on the bid he said was confident he would be able to announce more investors soon.
Mr Zahawi declined to comment.
Errore nel recupero dei dati
Effettua l'accesso per consultare il tuo portafoglio
Errore nel recupero dei dati
Errore nel recupero dei dati
Errore nel recupero dei dati
Errore nel recupero dei dati
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 minutes ago
- Yahoo
Three arrested as demo takes place outside hotel used to house migrants
Three people have been arrested at a protest and counter-protest outside a hotel being used to house migrants. Sunday saw the latest in a series of demonstrations outside The Bell Hotel in Epping, Essex, after an asylum seeker was charged with allegedly attempting to kiss a 14-year-old girl. Protesters waved union flags, while Stand Up To Racism counter-protesters marched to the hotel with signs reading: 'Stop scapegoating refugees and migrants'. A 52-year-old man from Loughton was arrested on suspicion of a public order offence. It is understood the arrest was in connection with abuse being shouted towards counter-protesters. A 53-year-old woman, also from Loughton, was arrested on suspicion of a racially aggravated public order offence connected with a previous protest, and it is understood she was part of the protest against the use of the hotel. A 27-year-old woman from Deptford was arrested on suspicion of criminal damage and a public order offence, and it is understood she was part of the counter-protest. Essex Police Chief Superintendent Simon Anslow said: 'I want to thank those who attended for the peaceful nature of both protests. 'Our role is to ensure that you can express your democratic right to protest safely and lawfully and we had a proportionate and robust plan in place to ensure that could happen. 'I am pleased that today has passed off without incident and I am grateful to our colleagues from other forces for their support.' Weyman Bennett, co-convener of Stand Up To Racism, told the PA news agency that volunteer security personnel accompanied them. He added: 'We're happy to demonstrate but we're not happy to be attacked by thugs, racists and hooligans.' One man was seen being taken away from the station area by two officers, though it was not clear if he was part of any group. Members of Stand Up To Racism were seen trying to stop people from filming the protesters, as locals watched the march from their driveways. One local man was seen chanting in support of Tommy Robinson, whose real name is Stephen Yaxley-Lennon, as the march went past. He began shouting 'there's only one Tommy Robinson' when a protester approached him. One Stand Up To Racism protester chanted 'fascist scum' at him before police stepped in to ensure they would not come together. Essex Police said it had established protest restrictions due to repeated serious disruption, violence, and harm to the community during previous demonstrations. The force said that there was a ban on anyone wearing face coverings and that there were designated sites opposite the hotel for protesters. A dispersal order was in effect from 12pm on Sunday until 8am on Monday, covering Epping town centre and nearby transport hubs. Both sets of protesters were kept separated by fences. Those protesting outside The Bell Hotel in Epping chose to ignore counter-demonstrators and began singing. They sang Sweet Caroline and Come On Eileen while demonstrators from Stand Up To Racism chanted: 'Nazi scum off our streets'. Essex Police said that residents have reported feeling 'trapped', fearful of leaving their homes and anxious about protest activity previously. Hotel residents and staff have been advised to remain indoors after 5pm as some have experienced verbal and physical harassment, including a resident chased and injured while returning to the hotel, the force added. Essex Police said there was an 'escalation of violence' during protests on July 13, 17, 20 and 24, involving hundreds of people. The force added that officers were assaulted, missiles were thrown, vehicles were vandalised and the hotel sustained broken windows and graffiti. The Epping protest was sparked by the charging of asylum seeker Hadush Gerberslasie Kebatu, 38, with sexual assault after he allegedly attempted to kiss a 14-year-old girl. He denied the charge at Chelmsford Magistrates' Court and will stand trial in August.
Yahoo
12 minutes ago
- Yahoo
Factbox-Key elements of EU-U.S. trade deal agreed on Sunday
BRUSSELS (Reuters) -The U.S. and the European Union agreed on a framework trade deal on Sunday, ending months of uncertainty for industry and consumers on both sides of the Atlantic. Here are the main elements of the deal: * Almost all EU goods entering the U.S. will be subject to a 15% baseline tariff, including cars, which now face 27.5%, as well as semiconductors and pharmaceuticals. The 15% tariff is the maximum tariff and is not added to any existing rates. * However, the U.S. is to announce the result of its 232 trade investigations in two weeks and decide separately on tariff rates for chips and pharmaceuticals. Whatever U.S. decisions come later on these sectors will be "on a different sheet of paper", European Commission President Ursula von der Leyen said. * The U.S. and EU will have zero-for-zero tariffs on all aircraft and their components, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials. More products would be added. The situation for spirits is still to be established. * Tariffs on European steel and aluminium will stay at 50%, but von der Leyen said these would later be cut and replaced by a quota system. * The EU pledged to buy $250 billion of U.S. liquefied natural gas (LNG) a year for three years, totalling $750 billion in total, as it replaces Russian gas. The EU will also buy nuclear fuel from the U.S. * Under the deal, the EU pledged to buy U.S. military equipment and European companies are to invest $600 billion in the U.S. over the course of Trump's second term. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12 minutes ago
- Yahoo
Irish premier welcomes trade deal between EU and US
The Irish premier has welcomed a deal between the European Union and the United States, which will see a 15% tariff on most EU imports to the US. The deal was reached during a meeting between Donald Trump and the president of the European Commission on Sunday. The US president met European Commission president Ursula von der Leyen to hammer out the final details on the trading relationship between Europe and the US. Reacting to the deal, Taoiseach Micheal Martin said the agreement was very welcome. 'It brings clarity and predictability to the trading relationship between the EU and the US – the biggest in the world,' the Fianna Fail leader said. 'That is good for businesses, investors and consumers. It will help protect many jobs in Ireland. 'The negotiations to get us to this point have been long and complex, and I would like to thank both teams for their patient work. 'We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here. 'The agreement is a framework and there will be more detail to be fleshed out in the weeks and months ahead.' Mr Martin said the higher tariffs will have an impact on trade between the EU and the US, which will make it more expensive and more challenging. 'However, it also creates a new era of stability that can hopefully contribute to a growing and deepening relationship between the EU and the US, which is important not just for the EU and the US, but for the global economy,' he added. 'Given the very real risk that existed for escalation and for the imposition of punitively high tariffs, this news will be welcomed by many.' The deal was also welcomed by deputy Irish premier and Minister for Foreign Affairs and Trade Simon Harris, who said it brings clarity to businesses. 'While we have yet to see the detail, I welcome that an agreement has been announced by Commission President von der Leyen and US President Trump,' Mr Harris said in a statement. 'A deal provides a measure of much-needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world. Ireland makes a key contribution to this with the Ireland-US economic relationship valued at more than one trillion euros. 'The US had made clear, and this has been replicated in other recent agreements, which the US has reached with other countries, that a baseline tariff was always going to be part of the outcome. 'I have always stressed that tariffs are damaging and will have a negative impact on companies exporting to the US. 'While Ireland regrets that the baseline tariff of 15% is included in the agreement, it is important that we now have more certainty on the foundations for the EU-US trade relationship, which is essential for jobs, growth and investment. 'President von der Leyen described this as 15% tariffs across the board, all-inclusive.' He said further detail is needed around pharma, aviation and other sectors. Mr Harris said he will examine the details of the agreement over the coming days to establish the effect on Irish businesses and the economy. Earlier, EU commissioner Michael McGrath said the meeting was a 'significant and decisive moment'. Mr McGrath, EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, said it would involve substantive negotiations between both sides. 'It's a significant moment, we hope a decisive moment, and it builds on an enormous amount of work that has been done over quite a period of time,' Mr McGrath said ahead of the meeting. 'President Trump invited President von der Leyen to Scotland for a meeting. 'This follows on the back of intensive negotiations over a number of months. He added: 'It is not a case of turning up and signing on the dotted line. There will be a real discussion that will happen, and it will take on a dynamic of its own, and let's see what happens over the course of the afternoon. 'But from the EU's point of view, we are determined to do all that we can to get a deal for European businesses, because we recognise the cost of uncertainty. 'It manifests in trade and in investment decisions and ultimately in employment and of course tariffs can cost consumers at the end of the day. 'We want a good deal. We have negotiated hard, and we're at a point now where hopefully the two leaders can today bring it to a concluding phase.'
