How far does Gulf money go? An Abu Dhabi-backed newspaper buyout attempt is sparking panic in London

DUBAI, United Arab Emirates — Mansions, university facilities, think tanks, sports teams — the U.K. is no stranger to Gulf money and multibillion-dollar investments streaming from Qatar, the United Arab Emirates and Saudi Arabia into British institutions.

But newspapers? That's a hard stop, apparently. The latest investment pursuit flowing westward from one of the U.K.'s close Gulf allies, the UAE, has thrown British lawmakers, journalists and even former intelligence officials into a frenzy.

Just on Wednesday, Britain's government announced it would change its laws to stop foreign governments from being able to own the country's newspapers, potentially throttling a controversial Emirati ownership bid for one of the U.K.'s most influential papers.

More than 100 members of Parliament have signed a letter opposing the buyout of major British newspaper the Telegraph and news magazine, The Spectator, by UAE government-backed investment fund RedBird IMI. Long a favorite of Britain's Conservative Party, ownership of the 168-year-old daily is not just about profit, but about power.

The purchase would be backed by UAE Vice President Sheikh Mansour bin Zayed Al Nahyan, and would reportedly entail paying off some £1.2 billion ($1.53 billion) in debts owed by the paper's current owners, the Barclay family, to Lloyds Bank. The deal would ultimately see the Telegraph, which is valued at a reported £600 million, come under full Emirati ownership.

For many in the U.K., the takeover presents a dangerous threat to free press in the country. Lawmakers have been scrambling to introduce a new law that would enable Parliament to veto buyouts of news outlets by foreign governments.

"If major newspaper and media organisations can be purchased by