The independent directors appointed to oversee the sale of The Daily Telegraph have been warned that the removal of the newspaper’s two most senior executives breached a government order – and that any subsequent transgression could result in a multimillion pound fine.
Sky News has learned that the Department for Culture, Media and Sport (DCMS) last week wrote to Goodwin Procter, the law firm acting for the independent board members, to say that Lucy Frazer, the culture secretary, had concluded that recent management changes at the broadsheet publisher had contravened a requirement that she must consent to the removal and appointment of Telegraph bosses.
According to sources familiar with the letter’s contents, DCMS officials said that Ms Frazer had decided not to pursue further action over the breaches, but warned that “any further breaches may lead to enforcement action, including the imposition of a penalty… [which] may be up to 5% of the total worldwide turnover of the enterprises owned or controlled by the person on whom it is imposed”.
Results for the financial year ending 31 December 2022 showed that Telegraph Media Group recorded a turnover of just over £254m – meaning that a maximum fine levied on that basis alone could amount to over £12.5m.
The letter was sent just over a month after Anna Jones, a former Hearst UK executive, was appointed to replace Nick Hugh as TMG’s CEO.
Cormac O’Shea, the TMG finance chief, left the company just weeks earlier.
Ms Jones’s appointment also constituted a breach of the government’s Pre-Emptive Action Order, imposed last autumn, because the directors had not sought Ms Frazer’s prior approval, the letter is understood to have added.
A source close to the company said they believed that the departures of Mr Hugh and Mr O’Shea were part of the “ordinary course of business”, and were therefore excluded from the original order.
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A subsequent order issued by Ms Frazer following the executives’ departures was amended to remove the “ordinary course of business” clause, the source said.
The culture secretary’s latest intervention is the latest twist in a convoluted process that will determine the future ownership of two of Britain’s most influential newspapers.
Ofcom and the Competition and Markets Authority have been given a deadline of next Monday by Ms Frazer to report to her on whether they believe a takeover of the Telegraph titles by RedBird IMI, a state-backed Abu Dhabi investment vehicle, would impinge press freedom.
The £600m deal is being vehemently opposed by Telegraph journalists and Conservative politicians from both houses of parliament.
RedBird IMI is minority-owned by RedBird, a US media investor headed by former CNN president Jeff Zucker, and majority-owned by IMI, which is funded by Sheikh Mansour bin Zayed Al Nahyan, the ultimate owner of Manchester City Football Club.
It has sought to defuse controversy over the deal by offering legally binding assurances over editorial freedom, and in January restructured its bid to incorporate a new UK holding company that would own the Telegraph titles and Spectator magazine.
The new entity has the same ownership structure as the earlier vehicle, according to people close to the situation, being 75% owned by IMI and 25%-owned by RedBird.
A spokesperson for RedBird IMI said at the time of its announcement: “This change was made in order to clarify the point that IMI is a passive investor in the company that will own the Telegraph and as such will have no management or editorial involvement whatsoever in the title.”
An initial public interest intervention notice (PIIN) was issued by Ms Frazer late last year which subjected a prospective debt-for-equity swap handing RedBird IMI ownership of the titles to scrutiny by competition and media regulators.
Most observers expect the culture secretary to refer the deal to a Phase 2 investigation by the CMA, which would delay its completion by months – and could lead to it being blocked altogether.
The takeover is viewed as especially sensitive because of its proximity to a UK general election in which the Tories are likely to be at long odds to win an outright majority.
The independent directors of the Telegraph’s holding company were parachuted in by Lloyds Banking Group last year after the lender seized control of the newspapers from their long-standing owners, the Barclay family.
An auction of the titles followed, drawing interest from the Daily Mail proprietor Lord Rothermere and the GB News shareholder Sir Paul Marshall.
However, the sale process was pre-empted by RedBird IMI repaying £1.16bn of loans owed by the Barclays to Lloyds, with £600m used to purchase a call option to buy the newspapers and the remainder as a loan secured against other family assets, including the online retailer Very Group.
A spokesman for the independent directors said: “It is the fiduciary duty of the independent directors to act in the best interests of the Telegraph Media Group and we will continue to do so”.
The independent directors are led by Mike McTighe, a company turnaround veteran, with the others being Stephen Welch and Boudewijn Wentink, who also have experience of corporate restructurings.
Under the terms of the public interest intervention notice (PIIN) issued by Ms Frazer, RedBird IMI is prohibited from exerting any influence over the titles while investigations by the competition and media regulators are ongoing.
Davina McCall has said her short-term memory is “a bit remiss” as she recovers from brain tumour surgery.
Speaking from her bed, the visibly emotional TV presenterposted a short video updating her Instagram followers on her condition, saying it had been a “mad” time.
She expressed an “enormous heartfelt thank you” to people who had messaged her after she revealed this month she had a benign brain tumour, a colloid cyst, which she described as “very rare”.
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Looking bright, but with a visibly bruised left eye, McCall said: “My short-term memory is a bit remiss.
“But that is something I can work on, so I’m really happy about that. I’m writing everything down, to keep myself feeling safe.”
She added: “It’s been mad, and it’s just really nice to be back home, I’m on the other side.”
In a message posted with the video, she reiterated her thanks for all the support she has received, adding: “Had a great night’s sleep in my own bed. Have a couple of sleeps during the day which keeps my brain clear… Slowly, slowly…”
When she first shared her diagnosis, she said chances of having it were “three in a million” and that she had discovered it several months previously after a company offered her a health scan in return for giving a menopause talk.
The 57-year-old star said support from her fans had “meant the world”.
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She said she was being “brilliantly looked after” by her partner, hairdresser Michael Douglas, and her stepmother, Gabby, who she calls mum.
Becoming tearful, the presenter said: “I’d quickly like to say big up the stepmums. I don’t really say thank you to Gabby enough. She’s been an amazing rock my whole life.”
McCall was estranged from her birth mother, Florence McCall, who died in 2008.
With a catch in her voice, McCall went on: “I’ve got a massive dose of vitamin G – I’m just really grateful. I’ve always been really lucky in my life, but I feel unbelievably grateful right now. So, thanks for everything, all of you.
“I’m on the mend, I’m resting and sleeping loads and I feel really good. I’m just very lucky.”
Stars including presenter Alison Hammond, singer Craig David and radio host Zoe Ball quickly shared their delight at the positive update.
McCall rose to fame presenting on MTV in the mid-1990s, and later on Channel 4’s Streetmate, before becoming a household name as the host of Big Brother from 2000 to 2010.
She’s gone on to present programmes across the networks, the most recent being ITV dating show My Mum, Your Dad.
Last year, McCall was appointed Member of the Order of the British Empire (MBE) in the 2023 Birthday Honours for services to broadcasting.
Married twice, McCall has three children, two daughters and a son, with her second husband, presenter Matthew Robertson.
She has lived with Douglas since 2022, and they present a weekly lifestyle podcast together, Making The Cut.
In central Scotland, wind speeds of 50-60mph are likely, and gusts up to 70mph could be felt near the coast and on exposed bridges.
Met Office chief meteorologist Andy Page said that while the risk of snowfall had now diminished, rainfall would “affect much of the UK”.
Frequent showers are expected in Northern Ireland, northern England, Wales and the West Country, with the heaviest expected in southwestern parts of England and South Wales.
Mr Page said weather warnings “could still be amended” and possibly at short notice, and urged people to “keep up to date with the very latest forecast”.
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Sky News meteorologist Christopher England warns there could be a risk of hail and thunder in northern Scotland, at the start of the week.
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Storm Bert causes flooding in Wales
As of Monday morning, there were hundreds of flood warnings and alerts in place. Three of those – two in Wales and one in England – were “severe warnings”.
A further 160 flood warnings and more than 200 flood alerts were issued by the Environment Agency in England, and eight flood warnings and 23 flood alerts in place in Wales at the time of writing.
Bert to clear UK by Tuesday
By Tuesday, Storm Bert will finally clear the UK, the Met Office said, bringing with it “quieter weather for many”.
However, parts of the country may not be without rain or wind for long, as the forecaster says strong gusts and rainfall could start again on Tuesday night and into Wednesday.
“How long the more settled conditions last is uncertain, with rain probably returning to westernmost areas at least by the end of the week,” the Met Office website says.
Chris England adds: “Wednesday will bring strong winds and a spell of heavy rain across the south, while the north looks mostly fine after a frosty and foggy start in places.
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Woman loses umbrella to Storm Bert
“Thursday looks cool again, but mostly fine. Friday will be milder, with outbreaks of rain likely over Ireland, Northern Ireland and north-west Scotland.”
He says going into the weekend, Saturday “looks cloudy and breezy in the north and west, with a little rain possible at times”.
When could the next named storm be?
Storm Bert was the second named storm of the season after Storm Ashley brought similar wet and windy conditions towards the end of October.
Although it cannot be known for sure when the next storm will be, the Met Office already knows it will be referred to as Storm Conall. The forecaster names storms in alphabetical order.
It says it only names a storm when it has the “potential to cause disruption or damage which could result in an amber or red warning” and according to its long range forecast, this could be as soon as next month.
It says that between 9 and 23 December, “there are signs” there will be wetter and windier interludes with a risk of snow, adding: “These conditions look more likely to dominate towards the middle of December.”
Whether this will be strong enough for a storm to be named remains unknown.
Microsoft has said it is “investigating an issue” after users reported problems with Outlook and Teams.
In a post on X, Microsoft365 Status said: “We’re investigating an issue impacting users attempting to access Exchange Online or functionality within Microsoft Teams calendar.”
Microsoft Exchange Online is a platform for business communication that has a mail server and cloud apps for email, contacts, and calendars.
Down Detector, a website that tracks outages, said problems started at approximately 8am on Monday morning.
It said 87% of reported problems involved Outlook, when the email application is accessed through the web.
Other reported problems, according to Down Detector, included connection to the server and logging in.
Users from the UK and around, Europe took to social media to report they were having problems accessing the platform.
One user wrote: “When you need to check an important mail, but #outlook decides to not work…”
While another added: “Here in Belgium mainly issues with tracking of e-mail in Dynamics 365. Inbound and outbound in Outlook still work.”
Microsoft directed affected users to its admin centre, a page that is intended for those who have access to business networks and other professionals who manage IT networks. The page requires a login.