Abu Dhabi-backed RedBird IMI has said it will withdraw its offer for the UK’s Telegraph newspaper.
RedBird IMI is a joint venture between US firm RedBird Capital and Abu Dhabi’s International Media Investments.
It had previously struck a 1.2 billion-pound deal with Telegraph Media Group’s (TMG) previous owners, the Barclay family, late last year.
However, the agreement was put under the spotlight by the UK government which last month said it would bring forward legislation to block such state-backed takeover deals in the industry.
This may have prompted RedBird IMI to scrap its takeover plans, according to media reports.
“RedBird IMI has today confirmed that it intends to withdraw from its proposed acquisition of the Telegraph Media Group and proceed with a sale,” a RedBird IMI spokesperson said.
“We have held constructive conversations with the government about ensuring a smooth and orderly sale for both titles.”
RedBird IMI effectively took control of the Telegraph and the Spectator magazine in December when it repaid the debts owed by then-owner the Barclay family, including a 600 million pound loan against the titles.
It said it now plans to bring certainty to employees and readers of the publications by seeking new owners for the titles.
Redbird IMI is majority-owned by Sheikh Mansour bin Zayed Al Nahyan, vice president of the UAE and owner of Manchester City Football Club. It is run by former CNN president Jeff Zucker.
