Lucy Frazer rebukes Telegraph directors over removal of newspaper bosses
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.
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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.
A subsequent order issued by Ms Frazer following the executives’ departures was amended to remove the “ordinary course of business” clause, the source said.
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.
The DCMS declined to comment.
Barclays will no longer sponsor Latitude, Download or Isle of Wight festivals after musicians and comedians dropped out in protest over the bank’s ties to the Israel-Hamas war.
Live Nation, the concert promoter, told Sky News: “Following discussion with artists, we have agreed with Barclays that they will step back from sponsorship of our festivals.”
Upcoming Live Nation festivals across the UK this summer include Latitude, Download and the Isle of Wight.
Barclays signed a five-year sponsorship deal with Live Nation in 2023. It’s not clear if the suspension will apply to all events up to 2028.
Comedians Joanne McNally, Sophie Duker, Grace Campbell, and Alexandra Haddow all announced they would be boycotting Latitude Festival last week.
Musicians including CMAT, Pillow Queens, Mui Zyu, and Georgia Ruth had also pulled out of the event.
Download Festival, which comes to Donington Park, Leicestershire this weekend, had seen acts including Pest Control, Ithaca, Scowl, Speed and Zulu pull out, also over the festival’s sponsorship.
‘Facilitating genocide’
In a statement on Instagram, Pest Control wrote: “We will not take part in an event whose sponsor profits from facilitating a genocide”.
Meanwhile, Ithaca wrote on X: “Whilst we hate letting anyone down, this moment of solidarity sends a powerful message to the organisers about where the younger generation of bands stand”.
A spokesperson for Barclays told Sky News: “Barclays was asked and has agreed to suspend participation in the remaining Live Nation festivals in 2024”.
Pic: Palestine Action/X
Barclays calls on ‘leaders’ to ‘stand united’ against activist pressure
Palestine Action, a group whose members attacked 20 of the bank branches across England and Scotland last week, has accused Barclays of having financial interests in both Israel’s weapons trade and fossil fuels.
The UK-based Palestine Solidarity Campaign has called for a general boycott of the bank, while the Palestinian-led Boycott, Divestment and Sanctions (BDS) movement has named Barclays as one of their “divestment and exclusion” targets.
Barclays’ statement went on: “The protestors’ agenda is to have Barclays debank defence companies which is a sector we remain committed to as an essential part of keeping this country and our allies safe.
“They have resorted to intimidating our staff, repeated vandalism of our branches and online harassment. The only thing that this small group of activists will achieve is to weaken essential support for cultural events enjoyed by millions.
“It is time that leaders across politics, business, academia and the arts stand united against this.”
Barclays has said while it provides financial services to “public companies that supply defence products to NATO and its allies” it does not directly invest in the firms.
Latitude Festival told Sky News: “Following discussion with artists, we have agreed with Barclays that they will step back from sponsorship of Latitude Festival”.
Comedians pull out en masse
Taskmaster star McNally, who had been set to close the Latitude Festival on Saturday wrote in an Instagram story last week: “I’m getting messages today about me performing at Latitude when it’s being sponsored by Barclays.
“I’m no longer doing Latitude. I was due to close the comedy tent on the Sunday night, but I pulled out last week.
“I’m on the old artwork but I haven’t been listed on the site since I pulled out a week ago.”
Comedian Duker had shared a photo of her at a previous Latitude Festival, and confirmed she would be boycotting the event.
She wrote: “I am committed to minimising my complicity in what I consider to be a pattern of abhorrent, unlawful violence”.
The 34-year-old comedian also said her pro-Palestinian stance “has gained me violent abuse, targeted pile-ons and death threats”.
Fellow comedian Grace Campbell, who is the daughter of Sir Tony Blair’s former spokesman Alastair Campbell, shared Duker’s post in an Instagram story, announcing she was also pulling out of the festival.
Meanwhile, comedian Alexandra Haddow said she too would no longer appear at Latitude, writing on Instagram: “I can’t in good conscience take the fee.”
In a post shared on her Instagram account last week, Irish singer-songwriter CMAT said she would boycott Latitude, writing: “I will not allow my precious work, my music, which I love so much, to get into bed with violence.”
Isle Of Wight Festival. Pic: AP
Campaign groups celebrate victory
In response to the exodus of acts, Barclays previously defended its position, saying it recognised “the profound human suffering” caused by the Israel-Hamas war.
“We provide vital financial services to US, UK, and European public companies that supply defence products to NATO and its allies,” it said in a statement published online.
“Barclays does not directly invest in these companies. The defence sector is fundamental to our national security and the UK government has been clear that supporting defence companies is compatible with ESG considerations.
“Decisions on the implementation of arms embargos to other nations are the job of respective elected governments.”
Bands Boycott Barclays declares victory
In response to Barclays stepping away, campaign group Bands Boycott Barclays, which has been leading the protests, wrote on Instagram: “This is a victory for the Palestinian-led global BDS (Boycott, Divestment, Sanctions) movement.
“As musicians, we were horrified that our music festivals were partnered with Barclays, who are complicit in the genocide in Gaza through investment, loans and underwriting of arms companies supplying the Israeli military.
“Hundreds of artists have taken action this summer to make it clear that this is morally reprehensible, and we are glad we have been heard.
“Our demand to Barclays is simple: divest from the genocide, or face further boycotts. Boycotting Barclays, also Europe’s primary funder of fossil fuels, is the minimum we can do to call for change.”
Last month, more than 100 acts dropped out of The Great Escape Festival in Brighton and Hove due to its ties to Barclays.
Climate campaigners also welcomed the move to suspend the Barclaycard sponsorship.
‘Rotten bank’
Joanna Warrington at Fossil Free London said: “Barclays is a rotten bank: artists, brands, clients, and customers are all abandoning Barclays because of the billions Barclays is ploughing into fossil-fuel companies like Shell and Israeli arms companies dropping bombs on innocent Palestinian children.
“This won’t stop until Barclays stops funding destruction.”
Greenpeace UK’s co-executive director Areeba Hamid said: “This bank is the biggest fossil-fuel funder in Europe, bankrolling oil and gas to the tune of billions of pounds, and has now been linked to arms companies involved in the conflict in Gaza.
“By putting an end to the greenwashing, festival organisers are sending a clear signal to Barclays that it’s time they took responsibility for the destructive industries they fund.”
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Festival sponsors face growing scrutiny
Barclays has confirmed that despite no longer being associated with the festivals, their customers with tickets will not be affected and their tickets will remain valid.
In a similar turn of events, Hay Festival dropped its sponsorship with investment management firm Baillie Gifford last month, after numerous celebrities pulled out due to the company’s links with fossil fuels and businesses linked to the Israeli defence industry.
Activist group Fossil Free Books urged high-profile figures to distance themselves from the literary event, which saw performers including comedian Nish Kumar, singer Charlotte Church and Labour MP Dawn Butler pull out.
While in March many artists refuse to play SXSW Festival in Austin, Texas, due to the event’s connections to the US army and weapons companies linked with the conflict.
Download Festival will be held in Donington Park, Leicestershire this weekend.
The Isle of Wight Festival will be held in Seaclose Park, Newport, between 20 – 23 June, headlined by The Prodigy, Pet Shop Boys and Green Day.
Tens of thousands of people are expected to attend Latitude Festival at Henham Park in Suffolk, held from the 25-29 July.
Two sandwich makers supplying UK supermarkets have recalled products because of an E.coli risk, the Food Standards Agency has said.
It’s a precautionary step a week after the UK Health Security Agency said an outbreak had forced some people into hospital.
Products from Boots, Asda, Tesco, Co-op, Aldi, Sainsbury’s and Amazon are part of the recall, said the Food Standards Agency (FSA).
Asda and Tesco stressed it was a precaution and said shoppers could return the products for a refund.
Greencore and Samworth Brothers Manton Wood are the companies that supplied the products.
It’s understood other manufacturers will issue their own recalls in the coming hours.
The FSA said it had narrowed the source “to a small number of salad leaf products that have been used in sandwiches, wraps, subs and rolls”.
Symptoms include “severe and sometimes bloody diarrhoea, stomach cramps, vomiting and fever”, said Trish Mannes from the UKHSA.
However, some cases can cause serous complications that can lead to kidney failure.
People are being advised to follow NHS.uk guidance if they become unwell.
“Washing your hands with soap and warm water and using disinfectants to clean surfaces will help stop any further spread of infection,” said Ms Mannes.
People who might be infected also shouldn’t prepare food for others and avoid work or school until 48 hours after symptoms stop.
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The UKHSA said cases had nearly doubled in the last week, with a further 98 bringing the total to 211.
Numbers are expected to rise as testing continues for more cases of the Shiga toxin-producing E. coli (STEC).
Based on 160 cases, 42% of people have needed hospital treatment, the UKHSA added.
Last week, it said cases were linked to a “nationally distributed food item” but didn’t give further details.
E.coli bacteria are normally harmless and live in the intestines of humans and animals. However some strains, like STEC, can make people very ill.
Full list of recalled products:
Aldi Chicken Fajita Triple Wrap
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by Amazon BLT Sandwich
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by Amazon Chicken & Bacon Layered Salad
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by Amazon Chicken Salad Sandwich
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by Amazon Ploughman’s Sandwich
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by Amazon Prawn Layered Salad
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Asda Smoky Beans and Cheddar Cheese Wrap
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Asda Chicken Salad (Sandwich)
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Asda Chicken & Bacon Club (Sandwich)
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Asda Brie, Bacon and Chilli Chutney (Sandwich)
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Asda BLT (Sandwich)
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Asda Vegan No Chick’n Caesar Wrap
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Asda Tuna Crunch Sub Roll
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Asda Southern Fried Chicken Wrap
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Asda Southern Fried Chicken Triple Wrap
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Boots BBQ Chicken wrap
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Boots BLT (Sandwich)
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Boots Cheddar Cheese Ploughman’s (Sandwich)
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Boots Chicken & Bacon Caesar Wrap
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Boots Chicken Salad (Sandwich)
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Boots Chicken Triple (Sandwich)
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Boots Delicious Ham & Cheese Ploughman’s (Sandwich)
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Boots Halloumi & Greek Style Salad wrap
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Boots Ham & Egg Club (Sandwich)
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Boots Mixed Triple (Sandwich)
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Boots Southern Fried Chicken Wrap
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Boots Spicy Bean & Cheese Wrap
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Boots Vegan No Chicken Salad (Sandwich)
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Boots Vegan No Duck & Hoisin Wrap
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Boots Veggie Triple (Sandwich)
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Co-op Vegan Gro Onion Bhaji (Sandwich)
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Co-op Mexican Style Bean & Cheese Wrap
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Co-op Ham, Cheese & Pickle (Sandwich)
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Co-op Ham & Cheese Wrap
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Co-op Chicken & Bacon Caesar Wrap
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Co-op Bacon, Lettuce and Tomato (Sandwich)
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Morrisons Chicken Salad (Sandwich)
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Morrisons Chicken Salad PFS (Sandwich)
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Morrisons Gluten Free Chicken Salad (Sandwich)
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Morrisons Gluten Free Sandwich Platter
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OneStop Tuna Crunch Sub
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OneStop Chicken Salad Sandwich
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OneStop Hoisin Duck Wrap
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OneStop Chicken Bacon & Lettuce Sandwich
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Sainsbury’s Kitchen Deli Peri Peri Chicken Wrap
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Sainsbury’s Kitchen Deli BBQ Pulled Pork & Red Leicester Wrap
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Sainsbury’s Kitchen Deli Chicken, Bacon & Avocado Focaccia (Sandwich)
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Sainsbury’s Kitchen Deli Greek Style Wrap
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Sainsbury’s Kitchen Deli Jerk Halloumi Wrap
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Tesco Chicken Salad Sandwich
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Tesco Chicken Salad Sub
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Tesco BBQ Chicken Wrap
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Tesco Hoi Sin Duck Wrap
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Tesco The Chicken Club Sandwich
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Tesco Tuna Crunch Sub
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Tesco Spicy Bean Wrap
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Tesco Chicken Bacon & Lettuce Sandwich
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Tesco Fajita Chicken Wrap
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Tesco Summer Edition Greek Style Chicken Gyros Wrap
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The Gym Kitchen Peri Peri Chicken Chilled Wrap
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