Barclay family may face investigation under bid to regain control of The Telegraph

The Barclay family is facing a major obstacle in their bid to regain ownership of the Telegraph titles.

Sir Frederick and Sir David Barclay purchased The Daily Telegraph and The Sunday Telegraph 19 years ago in 2004, but later lost ownership of them after a dispute with Lloyds Bank. Sir David died in 2021 after falling ill, but Sir Frederick is looking to raise £1bn from a member of the royal family in the United Arab Emirates.

In June, Lloyds Bank confirmed that the Telegraph titles were up for sale, with bidders looking to take control through an auction process. However, if Barclay is able to settle his dispute with Lloyds, it could put an end to the bidding. However, the potential backing of the UAE could spark an government investigation - looking into whether the acquisition would be in the public interest.

The Department for Culture, Media and Sport can issue a public interest intervention notice (PIIN) on new financial arrangements for media assets. This is done to examine whether financial backing may pose a threat to competition, freedom of speech, the range of available media content or the accuracy of news.

"Financial arrangements may in certain circumstances confer material influence where the conditions are such that one party becomes so dependent on the other that the latter gains material influence over the company’s commercial policy," the guidance reads.

"For example, where a lender could threaten to withdraw loan facilities if a particular policy is not pursued.”

A spokesman for the Barclay family told The Times: There is no precedent and no basis for a PIIN being issued in relation to a debt transaction, and we are highly confident that the family’s proposal would not trigger any regulatory reviews regarding the ownership of the media assets. We continue to believe that our proposal offers Lloyds Banking Group and its shareholders the most compelling, straightforward and speedy resolution to this situation.”