Abu Dhabi-backed firm plans new UK holding company for Telegraph bid -Sky

The regulators are due to report back to Frazer by the end of Friday. An ownership battle was launched last year when Lloyds Bank seized control of the titles following a long running dispute over a 1.2 billion pound debt owed by the Barclay family.

Abu Dhabi-backed RedBird IMI is proposing to amend the corporate structure through which it plans to take ownership of The Telegraph newspaper by setting up a new UK holding company, Sky News reported on Wednesday.

The change is likely to trigger a fresh probe into the takeover by Britain's culture minister, Sky added, citing government sources. A spokesperson for RedBird IMI declined to comment on the report.

Growing alarm over possible foreign meddling in editorial matters at the right-leaning Telegraph and its sister title, the Spectator magazine, prompted culture minister Lucy Frazer to step in and order a probe by the competition watchdog, the CMA, and media regulator Ofcom. The regulators are due to report back to Frazer by the end of Friday.

An ownership battle was launched last year when Lloyds Bank seized control of the titles following a long running dispute over a 1.2 billion pound debt owed by the Barclay family. RedBird IMI played a role in the Barclays regaining control of the newspaper in December by helping repay the debt.

Under the plan, RedBird IMI was due to quickly gain control of the assets through a debt-for-equity swap, until the government stepped in.