The Prime Minister Rishi Sunak is proposing to block the takeover of the Telegraph by Abu Dhabi-backed RedBird IMI by changing the law to prevent a foreign state from buying a UK news organization. The proposal would “amend the media merger regime explicitly to rule out newspaper and periodical news magazine mergers involving ownership influence or control by foreign states”. Lord Stephen Parkinson,  the culture minister, said yesterday as he laid out plans in the House of Lords. A deal involving a foreign country would be vetted by the Competition and Markets Authority then blocked or unwound if it found the state would have influence over the media group.

The proposal means RedBird IMI’s £600million takeover of Telegraph Media Group would probably be blocked as it stands, since Abu Dhabi has provided three-quarters of RedBird IMI’s cash, controlled by Sheikh Mansour bin Zayed al- Nahyan, a vice-president of the United Arab Emirates, who also owns Manchester City FC.

Tory MPs are putting pressure on Downing Street to block the deal, which includes the Spectator Magazine. Redbird will now have decided whether to bring in new money to dilute the Abu Dhabi stake or simply to sell the Telegraph newspaper and the Spectator magazine.

RedBird IMI struck a deal to try and buy the media group from Lloyds for £600million after the bank seized control from the Barclay family.

Recommendations by the Media watchdog Ofcom and the CMA will remain confidential until Frazer has decided whether to allow the deal or refer it for a Phase 2 inquiry, as this probe would probably delay a final decision until after Sunak’s amendment becomes law.