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.
Image: Culture secretary Lucy Frazer MP
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.
A professional footballer has been jailed for causing the death of a cyclist in a car crash.
Mansfield Town forward Lucas Akins crashed into Adrian Daniel in his Mercedes G350 in Huddersfield on 17 March 2022, while taking his daughter to a piano lesson.
Leeds Crown Court heard that Mr Daniel, 33, suffered catastrophic head injuries and died 10 days later.
Akins, 36, played in Mansfield’s 0-0 draw with Wigan on 4 March, hours after pleading guilty at Leeds Crown Court to death by careless or inconsiderate driving.
The footballer has continued to play for Mansfield since the incident.
Judge Alex Menary said on Thursday that he had considered imposing a suspended sentence, but had concluded that only an immediate sentence of 14 months’ imprisonment was appropriate.
Image: Mansfield Town’s Akins. Pic: George Wass/PPAUK/Shutterstock
A spokesperson for Mansfield Town FC said it “acknowledges” the court’s decision and offered the club’s “sincere and deepest condolences to the family of Adrian Daniel at this difficult time”.
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“The club is considering its position with regards to Lucas and will be making no further comment at this stage,” the spokesperson added.
‘Like hell’
Prosecuting, Carmel Pearson said it was a “difficult junction to emerge from” but that the defendant “did not stop at the give-way sign”.
Savanna Daniel, Mr Daniel’s wife, told the court it had been “like hell and a nightmare [she is] not waking up from”.
“There was no reason for Adrian to be killed that way,” she said, adding it was “too simple a collision to have taken a life”.
Image: Adrian Daniel. Pic: West Yorkshire Police/PA
Mrs Daniel said she did not want Akins’s children growing up without their father as she did not want “any more lives to be destroyed from this”, but she criticised the defendant for failing to plead guilty at an earlier stage.
Tim Pole, representing Akins, said he was “fundamentally a decent, honest and hard-working individual”.
“I want to publicly apologise on his behalf,” he said.
Mr Pole added that Akins understood Mrs Daniel’s “frustration and anger” over the time it took him to plead guilty.
Handing down his sentence, the judge accepted that Akins’s remorse was genuine but by not admitting to the offence at an earlier stage, he had prolonged Mrs Daniel’s “heartache and grief”.
After the sentencing, Mrs Daniel said “three years of hell” had come to a close, in a statement via West Yorkshire Police.
She said Akins had made a “farce” of the justice system and that his failure to plead guilty sooner “makes a mockery of any remorse that Akins offers for his actions”.
Akins, who has played for Mansfield Town since 2022 and was previously with clubs including Huddersfield Town, Tranmere Rovers and Burton Albion, was also suspended from driving for 12 months.
Much of the UK will bask in warm, sunny conditions at the start of next week, with inland temperatures up to 10C higher than average, but it’s a mixed picture before then.
The first half of spring brought warmth and sunshine for many, but the last 10 days have been more changeable.
Some areas of Ireland, Northern Ireland, southwest Wales, and southwest England have seen much-needed rainfall, whereas parts of northern Britain have observed very little.
Image: Warm, sunny conditions, such as those in Harrogate on Thursday, are expected at the start of next week. Pic: PA
Tyne and Wear in northeast England has recorded just 7% of its average April rainfall, whereas Cornwall in the southwest of the country has already seen 156%.
And the Milford Haven rain gauge in Wales has seen over twice its average April rainfall.
There’ll be more rain over the next few days, mainly in the West, but it looks like high pressure will settle things down from Sunday.
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Temperatures will rise too, becoming widely above average on Monday and Tuesday.
Highs of 22C (72F) to 24C (75F) can be expected.
The highest temperature of the year so far is 24C (75F), seen at Northolt in northwest London on Saturday 12 April.
The settled conditions will bring plenty of sunshine, with UV levels expected to be around moderate.
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It’ll be dry for runners and spectators, with sunny spells and light winds.
Competitors in the Manchester Marathon on Sunday will face similar conditions to London’s runners; it should be dry with sunny spells. The temperature first thing will be around 9C (48F), but it’ll warm up with a high of about 19C (66F).
England’s schools are under fresh scrutiny after government data revealed a sizeable increase in both suspensions and permanent exclusions.
According to the Department for Education, almost 300,000 pupils were suspended during the spring term of 2023/24, an increase of 12% recorded in spring 2022/23.
Suspensions have nearly doubled since spring 2019, surging 93% from 153,465 back then.
Meanwhile, permanent exclusions were also higher and went from 3,039 to 3,107, a 2% rise.
At Lewis Hamilton’s charity Mission 44, chief executive Jason Arthur said: “We are continuing to see the number of children losing learning due to suspensions and exclusions grow year on year – especially for vulnerable learners who face disadvantage or discrimination.”
The reasons for both the suspensions and permanent exclusions were “persistent disruptive behaviour” but many voices from the education sector say the figures tell a deeper story about post‑pandemic pressures.
Mr Arthur said: “Persistent disruptive behaviour continues to be the most common reason – yet taking children out of the classroom often only addresses the symptom and not the underlying causes of poor behaviour.”
Campaigners and unions have also reacted with concern. Head of the Association of School and College Leaders Pepe Di’Iasio warned: “Young people only have one chance at a good education … missing classroom time damages their future.”
He urged ministers to back “early intervention strategies” rather than rely on exclusions as a quick fix.
Paul Whiteman, from the National Association of Head Teachers, echoed the plea, highlighting how poverty, the cost of living crisis and lingering pandemic fallout were fuelling bad behaviour.
He stressed that schools “need funded, specialist help” to tackle the root causes.
Charity director Steve Haines said: “Over 295,000 suspensions is a stark warning: our schools aren’t set up to support all students. Disadvantaged youngsters are four times more likely to be suspended.”
The Education Minister Stephen Morgan acknowledged the “broken system,” vowing that the government’s “Plan for Change” will roll out mental‑health professionals in every school, boost SEND support and expand free breakfast clubs –measures he says will curb the “underlying causes of poor behaviour”.