UK Culture Secretary Lucy Frazer has referred the UAE-backed takeover of the Telegraph Media Group to the Competition and Markets Authority for a detailed investigation.

The referral is a response to concerns from Ofcom about potential influence on the media group by the Abu Dhabi-led buyers.

The government is preparing new legislation that would prohibit foreign state ownership of British newspapers, potentially affecting the outcome of this takeover.

The contentious bid involves RedBird IMI, financed largely by UAE vice-president Sheikh Mansour, and raises alarm over the integrity of news and opinion expression in the Telegraph.

If the proposed legislation is enacted within the next one to two months, it could impact the Telegraph takeover, depending on the status of the case.

The decision for referral was based on Ofcom's suggestion of a possible incentive for the buyers to sway news accuracy and opinion expression in the Telegraph.

RedBird IMI must address these concerns by next Monday to avoid a more in-depth investigation and has expressed disappointment at the decision.